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Joanna Williams Purchased a One-Year Treasury Bill at $100

question 58

Short Answer

Joanna Williams purchased a one-year Treasury bill at $100. This bond does not have any coupon payment, but Joanna will get $105 at maturity. The inflation rate in a year's time is expected to be 1.3%.
A) What is the income yield from this investment?
B) What is the nominal rate of return from this investment?
C) What is the real rate of return from this investment?

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Company Policies

Set rules and guidelines created by a business to regulate and direct employees' actions and behaviors in the workplace.

Policies

Formal guidelines or principles that guide decision-making and behaviors within an organization.

Fairly and Objectively

In a manner that is impartial, just, and based on facts, ensuring equal and unbiased consideration.

Organizations

Structured groups of people working together towards common goals or objectives, often within a formally established framework.

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