Ask Question
23 May, 18:33

The Treasury Department auctioned $21 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.965%. What would be the effective rate of interest? Round your answer to the nearest hundredth percent.

+2
Answers (1)
  1. 23 May, 20:26
    0
    - Interest = $10000 x. 04965 x 13/52 weeks = $124.13

    - Proceeds = $10000 - 124.13 = $9875.87

    - Effective interest rate = $124.13 / (9875.87 x 13/52) = 5.03%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Treasury Department auctioned $21 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.965%. What would be the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers