Suppose you pay $9,800 for a $10,000 par Treasury bill maturing in 2 months. What is the annual percentage rate of return for this investment?

Suppose you pay $9,800 for a $10,000 par Treasury bill maturing in 2 months. What is the annual percentage rate of return for this investment?

Suppose you pay $9,800 for a $10,000 par Treasury bill maturing in 2 months. What is the annual percentage rate of return for this investment? 





A. 2.04%

B. 12 %

C. 12.24%

D. 12.89%


Answer: C. 12.24%



(10,000-9,800/9800)(12/2) = 12.24%


Learn More :