A Bank Buys a $10,000 Treasury Bill with a Maturity

question 11

Multiple Choice

A bank buys a $10,000 Treasury bill with a maturity of 1 year. Current market rates are 8%. If interest rates rise to 8.25%, what is the approximate change in the price of the T-bill?

• A) -0.02%
• B) -0.23%
• C) -2.31%
• D) -23.15%
• E) -231.15%

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Definitions:

Stroke

A medical condition caused by the interruption of blood supply to a part of the brain, leading to the death of brain cells and loss of function in affected areas.

Deep Vein Thromboses (DVTs)

The formation of blood clots within a deep vein, typically in the legs, which can lead to serious complications if dislodged.

Immobile

Unable to move or be moved, often used to describe patients who are bedridden or have severe movement restrictions.

Elastic Stockings

Specialized hosiery designed to improve blood circulation, often used in medical therapy to prevent venous disorders like thrombosis.