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You Purchase a 8 1/2s February $10,000 Par Treasury Note

Question 41

Multiple Choice

You purchase a 8 1/2s February $10,000 par Treasury Note at 105:16 and hold it for exactly one year at which time you sell it.What is your rate of return if your selling price is 105:16?


A) 8.00%
B) 8.06%
C) 8.22%
D) 8.50%
E) 8.47%

Correct Answer:

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