Assume that 3-month Treasury bills totaling $24 billion were sold in $10,000 denominations at a discount rate of 5.450%. In addition, the Treasury Department sold 6-month bills totaling $22 billion at a discount rate of 5.395%.
a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)
Discount amount for 3-month bills $
b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.)
Discount amount for 6-month bills $
c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
Effective rate for 3-month bills %
d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.)
Effective rate for 6-month bills.