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Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free rate, how much will you receive in 90 days
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Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free rate, how much will you receive in 90 days

User Tarnfeld
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1 Answer

6 votes

Answer: $10029

Step-by-step explanation:

Based on the information given in the question, if $10000 is invested today at the risk-free rate, the amount that'll be received in 90 days will be calculated thus:

= Investment × (1 + Asked) × (DTM/360)

= 10000 + (1 + 0.0115) × (90/360)

= 10000 + 1.011 × 0.25

= 10029

Therefore, the answer is $10029

User Andres Kievsky
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3.6k points
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