{"id":119153,"date":"2021-01-21T01:20:26","date_gmt":"2021-01-21T01:20:26","guid":{"rendered":"https:\/\/essayparlour.com\/custom-essays\/?p=119153"},"modified":"2021-01-21T01:20:26","modified_gmt":"2021-01-21T01:20:26","slug":"order-the-answer-to-treasury-bills-have-a-fixed-face-value-say-1000-and","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/custom-essays\/business-economics-2\/order-the-answer-to-treasury-bills-have-a-fixed-face-value-say-1000-and\/","title":{"rendered":"Order the answer to: Treasury bills have a fixed face value (say, $1,000) and"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<td>Treasury bills have a fixed    (say, $1,000) and pay interest by selling at a discount. For example, if a one-year bill with a $1,000    sells today for $950, it will pay $1,000 \u2013 $950 = $50 in interest over its life. The interest rate on the bill is therefore $50\/$950 = 0.0526, or 5.26 percent. a. Suppose the price of the Treasury bill falls to $925. What happens to the interest rate? b. Suppose, instead, that the price rises to $975. What is the interest rate now? c. Now generalize this example. Let P be the price of the bill and r be the interest rate. Develop an algebraic formula expressing r in terms of P. Show that this formula illustrates the point made in the text: Higher bond prices mean lower interest rates.<\/td>\n<\/tr>\n<tr>\n<th>Subject<\/th>\n<td>business-economics<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<br \/>\nTreasury bills have a fixed    (say, $1,000) and pay interest by selling at a discount. For example, if a one-year bill with a $1,000    sells today for $950, it will pay $1,000 \u2013 $950 = $50 <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43],"tags":[],"class_list":["post-119153","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/comments?post=119153"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119153\/revisions"}],"predecessor-version":[{"id":119154,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/posts\/119153\/revisions\/119154"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/media?parent=119153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/categories?post=119153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/custom-essays\/wp-json\/wp\/v2\/tags?post=119153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}