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You can buy a 1- year t-bill for 955 now. the bill pay 1000 one year from now. what is your rate of return on this investment?
Wiki User
∙ 16y ago
Your rate of return is equal to the amount of money you earn over the amount you initially paid for the bill. So, (1000-955)/955=45/955=4.712041885% so, the rate of return is approximately 4.71%
Wiki User
∙ 16y ago
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