What is the actual interest rate earn

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Reference no: EM131781916

Question: (a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9750. What rate does this earn?

(b) If the bank charges a fee of $40 to buy a T-bill, what is the actual interest rate you earn?

Reference no: EM131781916

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