A $10,000 Treasury Bill Maturing in 30 Days Has a Listed

question 35

Multiple Choice

A $10,000 Treasury bill maturing in 30 days has a listed ask discount of 6.2%. Its annualized equivalent yield is

• A) 6.62%.
• B) 6.32%.
• C) 6.02%.
• D) 6.23%.

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Definitions:

Probability Distribution

A mathematical function that calculates the likelihood of various possible results happening in an experiment.

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a set of data points or investment returns.

Variability

Describes the extent to which data points in a data set or distribution differ from the average or mean value.

Return

Return refers to the earnings generated and realized on an investment over a particular period of time, expressed as a percentage.