If an Investor Buys a T-Bill with a 90-Day Maturity

question 19

Multiple Choice

If an investor buys a T-bill with a 90-day maturity and $50,000 par value for $48,500 and holds it to maturity, what is the annualized yield?

• A)about 13.4 percent
• B)about 12.5 percent
• C)about 11.3 percent
• D)about 11.6 percent
• E)about 10.7 percent

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Definitions:

Competitive Advantage

The ability of a company to achieve and maintain a superior position over its competitors, often through quality, innovation, cost, or customer service.

Consumer-Driven Health Plan

A type of health insurance plan that allows members to use health savings accounts, health reimbursement arrangements, or similar medical payment products to directly pay routine healthcare expenses.

Medical Savings Account

A tax-exempt account established to pay for medical expenses, often used in conjunction with high-deductible health insurance policies to cover out-of-pocket costs.

High Deductible

A health insurance plan with lower premiums and higher deductibles than a traditional health plan, emphasizing consumer-driven health care.