Average Rate of Return or Yield on a 6-Month Government

question 69

Multiple Choice

Average rate of return or yield on a 6-month Government of Canada treasury bills sold on June 18, 2013 was 1.04% (http://www.bankofcanada.ca/rates/interest-rates/t-bill-yields/) . At this yield, what price was paid for a T-bill with a face value of $50 000?

• A) $50 260
• B) $49 740
• C) $49 741.35
• D) $260
• E) $258.65