Suppose price of treasury bill falls to 925. illustrate, Ask an Expert

Economics

Q. Treasury bills have a fixed face value (say, 1000) and pay interest by selling at a discount. For example, if a one year bill with a 1,000 face value sells today for $950, it will pay 1000-950 = 50 in interest over its life. Interest rate on bill is therefore 50/950 = 0.0526 or 5.26 percent.

A. Suppose price of Treasury bill falls to $925. Illustrate what is interest rate?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9306816

Have any Question?Write your Review or question?

Related Questions in Business Economics

Explain the real-nominal principle in detail this is from

Explain the real-nominal principle in detail? This is from Economics course.

What is the effect of changes in gasoline prices on the

What is the effect of changes in gasoline prices on the demand for restaurant meals? Is gasoline an economic complement of restaurant meal Are restaurant meals an economic complement of gasoline

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 95% confident that the sample mean is within one unit of the population mean. Assume a standard deviation of 4.3 in a normally distributed population.

A certain process is known to produce non-conforming items

A certain process is known to produce non-conforming items 20% of the time. A char- acteristic of the units produced by this process are currently being monitored for quality. Samples of size 15 are selected, and each it ...

Per capita income of winterfell is 15000 with a growth rate

Per capita income of Winterfell is $15,000 with a growth rate of 4%. Per capita income of King's Landing is $25,000 with a growth rate of 0%. How long until per capita income is the same in both locations?

Sppose a and b are collectively exhaustive in addition pa

Suppose A and B are collectively exhaustive. In addition, P(A) = 0.2 and P(B) = 0.8. Suppose C and D are both mutually exclusive and collectively exhaustive. Further, P(C|A) = 0.7 and P(D|B) = 0.5. What are P(C) and P(D) ...

How technology government regulations international

How technology, government regulations, international factors, expectations about the future, and the macroeconomy play a role in managerial decision-making? Carefully explain each by giving example.

Consider the following cournot oligopolythere are two

Consider the following Cournot oligopoly: There are two identical firms in the industry, which set their quantities produced simultaneously. The two firms face a market demand curve, Q = 120 - P, in which Q = q1 + q2. Ea ...

A research group needs to determine a 90 confidence

A research group needs to determine a 90% confidence interval for the mean repair cost for all car insurance small claims. From past research, it is known that the standard deviation of such claims amounts to $124.88. (a ...

A random sample of 19 college mens basketball games during

A random sample of 19 college? men's basketball games during the last season had an average attendance of 5,046 with a sample standard deviation of 1,753. a. Construct a 99?% confidence interval to estimate the average a ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert