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Calculate the t-bill annual rate of return

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1. A T-bill that is traded in the bond market for $925, promises the face value of $1,000 upon its maturity in exactly 300 days. Use continuous compounding/discounting to Calculate the T-bill annual rate of return.

2. Consider a zero - coupon bond with and annual rate of 5%. The bond matures in 25 years. Use periodic compounding/discounting to calculate the bond's market price.

Reference no: EM133067865

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