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    Exam 9: Interest Rates
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    A Treasury Bill Has 40 Days Left to Maturity
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A Treasury Bill Has 40 Days Left to Maturity

Question 19

Question 19

Multiple Choice

A Treasury bill has 40 days left to maturity. The bank discount yield on the bill is 3.75%. What is the effective annual rate?


A) 3.55%
B) 3.66%
C) 3.77%
D) 3.82%
E) 3.99%

Correct Answer:

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