Question

3. A T-bill is a type of bond that is sold at a discount over the 18 suppose you buy a 13-Week T-bill with a face value of $10,000 to means that in 13 weeks, the government will give $200. What annual interest rate have you earned? at over the face value. For example, le of $10,000 for $9,800. This oks, the government will give you the face value, earning yu

Answer 1

Solution 3:

Annual interest rate earned on T-bill = ($10,000 - $9,800) / $9,800*52/13 = 8.16%

Solution 5:

Future value = P ( 1+i)^n

= $300 (1+0.05)^10

= $300 * 1.628895

= $488.67