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Suppose that you purchased a 26-week T-bill at $998 (assuming the face value is $1,000). Now the asked bank discount rate on
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Answer #1

1. Price of T-bill = $996.15
2. Rate of return = 0.2004%

Note: Annual Rate of return = 0.2004%×52/26
= 0.4008% 1) The price of T-Bill today = - face value - discount rate for the peush. Blood - 4% x 5 x (1000) 1000 - 0.04x5 x(1000) 52 5

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