You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yieldon this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased to6%. What is your return holding the bank bill?

T-bills are issued at discount to the face value of Bill and the discount on bill is the rate of…

You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yie on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased 6%. What is your return holding the bank bill?

You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yie on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased 6%. What is your return holding the bank bill?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 6P

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You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yield
on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased to
6%. What is your return holding the bank bill?

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