You observe in the market that there is a 6-month T-bill trading at 97.4567 and...

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Accounting

You observe in the market that there is a 6-month T-bill trading at 97.4567 and that there is a one-year T-bill trading at 95.7514. Based on this information the market expects the 6-month holding period return (i.e. not annualized) that will be available 6 months from now is:

Select one:

a. 2.21%

b. 1.78%

c. 2.01%

d. 1.55%

e. 1.35%

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