If a $10,000 T-Bill Is Purchased for $9,600 and Matures

question 62

Multiple Choice

If a $10,000 T-bill is purchased for $9,600 and matures in 270 days, what will be the annualized return? (Round to the nearest hundredth of a percent.)

• A) 4.01%
• B) 4.17%
• C) 5.63%
• D) 2.85

---

Definitions:

Invisible Hand

A metaphor coined by Adam Smith to describe how individuals pursuing their self-interest unwittingly contribute to the economic prosperity of society.

Market System

An economic approach wherein the processes of investment, manufacturing, and goods distribution are directed by supply-demand correlation, with a system that freely sets the prices of goods and services.

Prices

The amount of money required to purchase goods or services, indicating the value that consumers are willing to pay and sellers are willing to accept.

Industry

A sector of the economy that includes all businesses involved in the production or processing of goods, provision of services, or related activities.