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25-10-2022
Business

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Question 6
If a six-month treasury bill is purchased for $0.9675 on a dollar (i.e.,
$96,750 for $100,000 bill), what is the discount yield and the annual rate of
interest? What will these yields be if the discount price falls to $0.94 on a
dollar (i.e., 94,000 for a $100,000 bill)?

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