Suppose a Treasury Bill Has a Purchase Price of $9,865

question 96

Essay

Suppose a Treasury bill has a purchase price of $9,865.50; a face value of $10,000 and 90 days to maturity.Calculate the yield to maturity and the yield on a discount basis.

---

Definitions:

APS

Acute Psychological Stress, referring to the significant mental stress an individual experiences in response to a perceived threatening situation.

Disposable Income

Financial avenues open to households for spending and saving, post income tax deductions.

MPS

Marginal Propensity to Save, which is the fraction of additional income that a household saves rather than spends on consumption.

Saving

The act of setting aside a portion of current income for future use, typically to achieve financial goals or provide a safety net.