How much would you pay for a 6-month T-bill with a face value of $12,500 and...

How much would you pay for a 6-month T-bill with a face value of $12,500 and a rate that would yield 3.5% if there is 125 days remaining in the term

Expert Solution

Price to be paid=Face Value/(1+r)^(d/365)
=125000/(1+3.5%)^(125/365)
=123535.9772

jeff jeffy answered 2 years ago

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