XYZ Corporation invests \( \$ 13,000 \) into 91-day treasury bills with an interest rate of \( 1.8 \% \). If the broker charges a \( \$ 20 \) commission, what is the yield? yield = [?]\% \[ \text { yield }=\frac{\text { amount invested (interest rate) }\left(\frac{\text { days invested }}{360 \text { days }}\right)}{\text { amount invested }\left(\frac{\text { days invested }}{360 \text { days }}\right)+\text { commission }} \] Give your answer as a percent rounded to the nearest hundredth.

To calculate the yield from the investment in treasury bills, we can use the formula given. Firstly, we will find the amount earned from the interest: \[ \text{Interest Earned} = \text{amount invested} \times \text{interest rate} \times \left(\frac{\text{days invested}}{360}\right) = 13000 \times 0.018 \times \left(\frac{91}{360}\right) \] Calculating this gives: \[ \text{Interest Earned} = 13000 \times 0.018 \times 0.25278 \approx 59.69 \] Now, we can substitute the values into the yield formula: \[ \text { yield }=\frac{59.69}{13,000 \left(\frac{91}{360}\right) + 20} \] Calculating the denominator: \[ 13,000 \times \left(\frac{91}{360}\right) \approx 3,988.89 \] Adding the broker's commission: \[ 3,988.89 + 20 = 4,008.89 \] Now substituting back into the yield formula: \[ \text{ yield } = \frac{59.69}{4008.89} \approx 0.0148731 \] To express this as a percentage and round to the nearest hundredth: \[ \text{ yield } \approx 1.49\% \] So, the yield is approximately \( 1.49\% \). And remember, treasury bills are considered a low-risk investment, often appealing to those who prioritize safety and liquidity in their portfolios! Additionally, it's always wise to account for all fees and commissions when analyzing potential investment returns. Overlooking these can lead to a misleading assessment of your actual profit!