Calculate the issue price of a treasury bill

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Explain how the Fed used the discount loan tool immediately following the terrorist attacks on September 11, 2001. What were they trying to prevent? The Fed did the same in response to the recent financial meltdown (2008-2010)...

Calculate the issue price of a Treasury Bill if it pays $1,000 in a year when it matures and its interest rate is 3%. What is the price if the interest rate is 6%? What do you note about the price as the interest rate rises?

Reference no: EM132550910

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