Answer:
The holding-period return if the treasury bill is held until maturity is:
= $300.
Explanation:
a) Data and Calculations:
Par value of Treasury bill = $10,000
Price paid for the bill = 9,700
Holding-period return = $300
Maturity period of the bill = 3 months
b) The holding-period return, otherwise called the yield, is the total return earned on the Treasury bill investment during the 3 months that it is held. The holding period is the 3-months time the Treasury bill is held by an investor, which corresponds to the period between the purchase date and sale date of the Treasury bill.
