You Are An Investor Interested In Government S Securities In General And T Bills In 2903201
You are an investor interested in government’s securities in general and T-bills in particular. You are interested in a $10,000 T-bill that has 200 days to maturity and a 360-day asked discount rate of 0.150%. If you placed an order for 1000 T-bills, what will be your total dollar return when those T-Bills expire? Discount % on 200 days=0.0833% Purchase price of T bill =10000*(100-0.0833)/100=9991.667 Total purchase price of 1000 T bills=9991666.67$ Redemptiom value=1000*10000=10000000 Net gain =10000000-9991666.67=$8333.33
Pointer Writers: a professional writing service that provides original papers. Our products include academic papers of varying complexity and other personalized services, along with research materials for assistance purposes only. All the materials from our website should be used with proper references.