An Investor Purchased a 91-Day, $100,000 T-Bill on Its Date

question 121

Multiple Choice

An investor purchased a 91-day, $100,000 T-bill on its date of issue for $97,500, and sold it 40 days later for $98,475. What rate of return did the original investor actually realize during the 40-day holding period?

• A) 2.5%
• B) 8.898%
• C) 10.027%
• D) 4.011%
• E) 9.125%

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Definitions:

Identity Confusion

A state in which an individual experiences uncertainty, conflict, or disorder regarding their personal identity or role in society.

Trust Versus Mistrust

A stage in Erik Erikson's theory of psychosocial development where an infant learns to trust their caregivers and environment or develops mistrust.

Generativity Versus Stagnation

According to Erikson, a major developmental task of later adulthood is finding meaning in one’s work, which produces a sense of generativity. Failure leads to a sense of stagnation.

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A term often used in psychology to denote a concern for establishing and guiding the next generation, typically expressed during middle adulthood.