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Natalka [10]
3 years ago
8

The Treasury Department auctioned $21 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.965%. What wo

uld be the effective rate of interest? Round your answer to the nearest hundredth percent.
Business
1 answer:
egoroff_w [7]3 years ago
8 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% 
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