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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