Question

An investment dealer bought a 182-day Government of Canada treasury bill at the price required to yield an annual rate of return of 3.38%

Later the same day, the investment dealer sold this T-bill to a large corporation which will receive a yield of 3.25% on its investment. In order for the large corporation to receive a 3.25% annual rate of return, what price would it pay to purchase the treasury bill of $1000000 from the Investment Dealer?

Answer 1

Step-by-step explanation:

Yield for 182 days = 3.38% × (182 days / 365 days)

= 1.6854%.

So, Price paid by investment Dealer = $1,000,000 / (1 +...