Assume that 3-month Treasury bills totaling $12 billion were sold in $10,000 denominations at a discount rate of 3.605%. In addition, the Treasury Department sold 6-month bills totaling $10 billion at a discount rate of 3.55%.
a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)
b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)
c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
a. Discount amount for 3-months bills $90.13
b. Discount amount for 6-month bills $177.50
c. Effective rate for 3-month bills 3.64%
d. Effective rate for 6-month bills 3.61%