Which will give him the better return

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1. Return on T-bills. Dave has $20,000 excess cash to invest. He can purchase a $20,000 T-bill for $19,400 or two $10,000 T-bills for $9,600 each. Which will give him the better return?

2. Return on T-bills. Lauren purchased a $40,000 T-bill for $38,400. A few months later, Lauren sold the T-bill for $39,000. What was Lauren's return on the T-bill?

Reference no: EM131306236

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