A Three-Month Treasury Bill Sold for a Price of $99

question 67

Multiple Choice

A three-month treasury bill sold for a price of $99.311998 per $100 face value.The yield to maturity of this bond expressed as an EAR is closest to:

• A)2.5%.
• B)2.8%.
• C)3.2%.
• D)4.0%.

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Definitions:

Unused Capacity

The portion of a company's production capability or resources that is not currently being used in production.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate information on product costing and profitability.

Equipment Depreciation

The process of allocating the cost of physical assets used in a business over their expected useful lives specifically for equipment.

Resource Consumption

The amount of raw materials, energy, or other resources used by an organization in its operational activities.