A famous painting was sold in 1947 for $21 comma 320. In 1998 the painting was sold for $32.1 million. What rate of interest c
1 answer:
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The effective annual yield of a treasury bill is equivalent to 12.55%.
Option B is the correct answer.
<h3>What is the treasury bill?</h3>The treasury bill is the trading instrument that is issued in the money market by the government.
Given values:
Par value: $100,000
Future value: $97,087
Number of years from now: 3 years
Step-1 Computation of interest rate of treasury bill:
Step-2 Computation of equivalent yield the bill:
Therefore, 12.55% is the equivalent yield on the treasury bill.
Learn more about the equivalent yield in the related link:
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Answer:
$96,914
Explanation:
360‑day borrowing rate in Swiss as given is 5%
rate = 100 + 5 = 105%
Total = 200,000/105% = SF190,476
The spot rate of the Swiss franc is $.48
Therefore SF190,476 = SF190,476 × $.48 = $91,428
360‑day deposit rate in US as given 6%
Total Invest = 6 % of $91,428 + $91,428
= $5485.68 + $91,428 = $96,914
