What Is the Yield of a 91-Day Canadian T-Bill with a Par

question 43

Multiple Choice

What is the yield of a 91-day Canadian T-bill with a par value of $1,000 that is quoted at 98.735?

• A) 5.07%
• B) 5.14%
• C) 5.22%
• D) 5.24%

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Definitions:

Monetary Policy

Actions by a central bank to control the money supply and interest rates in order to influence economic activity.

Fiscal Policy

Government policy regarding taxation and spending, aimed at influencing the economy.

Rational Expectations

The hypothesis that individuals form forecasts about the future based on all available information, including historical data and predictions about future policy actions.

Government Policy Makers

Individuals or groups within the government responsible for developing, implementing, and amending policies and regulations.