Issued three-month t-bill expects interest rates to increase

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Reference no: EM131343144

Current T-bill yields are approximately 2 percent. Assume an investor considering the purchase of a newly issued three-month T-bill expects interest rates to increase within the next three months and has a required rate of return of 2.5 percent. Based on this information, how much is this investor willing to pay for a three-month T-bill?

Reference no: EM131343144

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