Jake purchased a $100,000 182 day T-bill discounted to yield 5.5%. When he sold it 30 days later, yields had dropped to 5.0 % . How much did jake earn?
100,000
|____________________________________________|
__________5.5%___________| _ _ _ _5% _ _ _ _ _ _ _ _ 182 days_
30 days
FV =
P = 100,000
r = 0.055
t = 182 / 365 ? = 2742.47
first off , did i get the time line right ?
2nd; for T, what happens to T when the 30th day hits and beyond?