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Chapter 11 Questions If you pay $990 for a 28-day T-bill. It is worth $1,000 at maturity. What is the annualized investment y
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Answer #1

Hi,

As per policy we will solve only first question here.

Here buying value P = $990

Future Value F =$1000

time t = 28 days

annualized yield r = ((F-P)/P)*365/t

r = ((1000-990)/990)*365/28

r= 0.01*365.28

r= 13.17%

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