An investment dealer bought a 182-day government of canada, Ask an Expert

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An investment dealer bought a 182-day Government of Canada treasury bill at the price required to yield an annual rate of return of 3.38%

a) What was the price paid by the investment dealer if the T-bill has a face value of $1,000,000? Show your calculations.

b) Later the same day, the investment dealer sold this T-bill to a large corporation which will receive a yield of 3.25% on its investment.

In order for the large corporation to receive a 3.25% annual rate of return, what price would it pay to purchase the treasury bill of $1000000 from the Investment Dealer?

What was the investment dealer's profit on this transaction?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92775565

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