What is the effective rate for bills

Reference no: EM131936430

Question: Assume that 3-month Treasury bills totaling $23 billion were sold in $10,000 denominations at a discount rate of 5.200%. In addition, the Treasury Department sold 6-month bills totaling $21 billion at a discount rate of 5.145%.

a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)

Discount amount for 3-month bills: $ ____

b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)

Discount amount for 6-month bills: $ ____

c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)

Effective rate for 3-month bills: ____ %

d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)

Effective rate for 6-month bills: ____ %

Reference no: EM131936430

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