Chapter 7 T-Bill Yields_ANSWERS.docx - EXERCISE: T-BILLS...

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EXERCISE: T-BILLSANSWERSFormula: T-Bill Yield = (100 - price)/(price) X (365/term) X 1001. If you bought a 209-day t-bill for a price of 97, what would the yield be?
2. If you bought a 66-day t-bill costing 98.5 what would your yield be?
3.a) What is the total amount that you pay for a 97-day T-Bill that is priced at 99.705 if the face value is$5,000?
b) What is the amount of interest that is taxable?
c) What is the yield?
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T bill yield, 209 day t bill

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