An investor buys a t-bill with 120 days to maturity and, Ask an Expert

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An investor buys a T-bill with 120 days to maturity and $50,000 par value for $45,800. He plans to sell it after 90 days, and forecasts a selling price of $47,200 at that time.

(a) What is the annualized yield based on this expectation?

(b) What is the Discount based on this expectation?

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Financial Management, Finance

Category:- Financial Management
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