V. Discount Bond Example 1: You purchase a T-Bill at $1,600 with a Face value of...

Question

Question

Answer 1

Answer #1

1) Discount bond rate = Difference between face value and the value at which it sells

= $2000 - $1600

= $400

2) Similarly,

discount rate = $2000 - $1800

= $200

Answer 2

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