A $1,000,000 Face Value Treasury Bill with 49 Days to Maturity

question 6

Multiple Choice

A $1,000,000 face value Treasury bill with 49 days to maturity is currently selling for $991,650. What is the effective annual rate?

• A) 6.61%
• B) 6.57%
• C) 6.39%
• D) 6.53%
• E) 6.45%

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Definitions:

Negative To Positive

Describes the direction of flow of electrons in an electrical circuit, from a more negative point to a more positive point.

Lightning Protection

Systems or devices designed to protect structures and equipment from damage by directing lightning surges safely to the ground.

Grounded

Refers to a direct physical connection to the earth in an electrical system, used for safety and stability of the system.

Insulators

Materials that resist the flow of electrical current, often used to protect or separate conductors.