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Question
A portfolio manager plans to buy three-month T-bills with the total face value of $1,000,000 in one month. The current price for three-month T-bills is $988,520. What is the fair forward price if the current effective annual risk-free rate over one month is 4%?a. $950,500
b. $985,236
c. $988,520
d. $991,815
e. $1,028,061
Answer
This answer is hidden. It contains 3 characters.
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