Calculate the annual effective interest rate

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1.Diana decides to purchase a US Treasury Bill for 95,100. The Treasury Bill matures in 180 days for 100,000.

a. Calculate the quoted rate on this Treasury Bill. (Enter answer as a decimal and round to the nearest 5 decimal places.)

b. Calculate the annual effective interest rate the Diana will actually earn. (Enter answer as a decimal and round to the nearest 5 decimal places.)

c. Calculate the continuously compounded interest rate the Diana will earn. (Enter answer as a decimal and round to the nearest 5 decimal places.)

Reference no: EM132801898

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