What was the effective annualized return on your investment

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Question: At some point in 2016, you purchased a 26-week T-Bill maturing on March 2, 2017 (see the footnote below).[1] On the day of the purchase, the bid for the T-Bill was quoted at 0.473%, following the industry convention for T-Bill quotes.

On the day of the purchase, the bid-ask spread was 0.0022% (see the footnote below)[2]. When the T-Bill matured, you collected the T-Bill's face value of $10,000 and realized the holding period return on your investment of 0.1030%.

a.When (on what date) did you make the purchase?

b.What was the yield to maturity on that day? Use the ask price to compute the YTM and state your answer as an APR.

c.What was the effective annualized return (EAR) on your investment?

 

Reference no: EM133368521

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