A bank purchases a new 52-week $1,000,000 face value Treasury bill for $950,000. What is the discount rate on this T-bill (Hint: A 52-week T-bill has an original maturity of 364 days)
a.)4.95%
b.)5.00%
c.)5.06%
d.)5.19%
e.)5.26%
Answer: A
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Bank Management
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