Over the Past 35 Years, the Prevailing Market Yield or Discount

question 162

Short Answer

Over the past 35 years, the prevailing market yield or discount rate on 90-day T-bills has ranged from a low of 0.17% in February 2010 to a high of 20.82% in August of 1981. (The period from 1979 to 1990 was a time of historically high inflation rates and interest rates.) How much more would you have paid for a $100,000 face value 90-day T-bill at the February 2010 discount rate than at the August 1981 discount rate?

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Definitions:

Tort

A civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Legal Standard

A principle or guideline established by law that is used to judge the legality of actions or decisions in judicial and administrative proceedings.

Intentional Intrusion

Deliberate entry or infringement upon another's privacy or property without consent or legal justification.

Reasonable Person

A legal standard representing how a typical person, with ordinary prudence, would act in certain circumstances.