If the face value of a 91-day Treasury Bill is £100000 and it is issued at a discount of £500, what is the annual interest rate (yield) that the purchaser receives (expressed as a percentage to 2 decimal places)? Answer the question by providing the appropriate number including decimal point in the box below (e.g. 1.23). Do not enter a comma, space, letters, words or symbols (such as %). Failure to follow these instructions will result in your answer being marked as incorrect.

If the face value of a 91-day Treasury Bill is £100000 and it is issued at a discount of £500, what is the annual interest rate (yield) that the purchaser receives (expressed as a percentage to 2 decimal places)? Answer the question by providing the appropriate number including decimal point in the box below (e.g. 1.23). Do not enter a comma, space, letters, words or symbols (such as %). Failure to follow these instructions will result in your answer being marked as incorrect.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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