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The discount rate for a T-Bill with a maturity date of December30, 2020 (80 days...

The discount rate for a T-Bill with a maturity date of December 30, 2020 (80 days from its settlement date) and an even value of $100,000 is 0.225%. The price for this T-Bill is

a. $90,950

b. $19,950

c. $9,950

d. $99,950

Solutions

Expert Solution

Price of T-Bill = maturity value- [maturity value×discount rate×(number of days to maturity/360)]

Price of T-Bill = 100,000- [100,000×0.225%×(80/360)]

= $99,950

Answer: d. $99,950

jeff jeffy answered 2 years ago
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