On March 2, a Treasury Bill Expiring on April 20

question 34

Multiple Choice

On March 2, a Treasury bill expiring on April 20 had a bid discount of 5.80, and an ask discount of 5.86. What is the best estimate of the risk-free rate as given in the text?

• A) 5.86 %
• B) 5.83 %
• C) 6.11 %
• D) 6.14 %
• E) none of the above

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