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What is the effective rate for three-month bills

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Reference no: EM131921717

Assume that 3-month Treasury bills totaling $26 billion were sold in $10,000 denominations at a discount rate of 5.750%. In addition, the Treasury Department sold 6-month bills totaling $24 billion at a discount rate of 5.695%.

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: EM131921717

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