You see the current 3-month T-bill quoted on a discount basis at1.9325-1.9250. The T-bill has...

You see the current 3-month T-bill quoted on a discount basis at 1.9325-1.9250. The T-bill has a $10,000 face value. The T-bill has 90 days until maturity. What price would you receive for selling one of these T-bills (disregarding transaction charges)? Enter the price you would receive rounded to the nearest cent.

Expert Solution

Sell price of bond = Face Value * (1 - Bid rate * days till maturity/360)

Sell price of bond = 10000 * (1 - 1.9325% * 90/360)

Sell price of bond = 10000 * (1 - 0.00483125)

Sell price of bond = 10000 * 0.995169

Sell price of bond = $9951.69

jeff jeffy answered 2 years ago

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