A Treasury Bill Has a Face Value of $100,000,a Price

question 91

Multiple Choice

A Treasury bill has a face value of $100,000,a price of $99,797.12,and matures in 35 days.What is the asked yield?

• A) 1.98 percent
• B) 2.12 percent
• C) 2.28 percent
• D) 3.67 percent
• E) 3.74 percent

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Definitions:

Riskiest Divisions

Business units or segments within a company that are subject to the highest levels of uncertainty and potential loss.

Positive NPV

A situation in which the net present value (NPV) of a project or investment is greater than zero, indicating that the projected earnings exceed the anticipated costs in present-value terms.

Cost of Capital

The rate of return that a business must earn on its investment projects to maintain its market value and attract funds.

Net Present Value

A calculation used to determine the present value of an investment's profit by discounting future cash flows back to their present value.