Suppose You Pay $9,400 for a $10,000 Par Treasury Bill

question 32

Multiple Choice

Suppose you pay $9,400 for a $10,000 par Treasury bill maturing in six months.What is the effective annual rate of return for this investment?

• A) 6.38%
• B) 12.77%
• C) 13.17%
• D) 14.25%

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Definitions:

Volume

How much room an object or matter fills.

Mass

A quantification of the matter contained within an object, usually expressed in kilograms or grams.

Density

A measure of mass per unit volume of a substance, indicating how compact the substance is.

Volume

The amount of space occupied by an object, liquid, or gas, typically measured in cubic units.