Current t-bill yields are approximately 2 percent- based on, Financial Management

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Current t-bill yields are approximately 2 percent- based on

Return on T-Bills :

Current T-bill yields are approximately 2 percent. Assume an investor considering the purchase of a newly issued threemonth 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?

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