Imagine there is a $100,000 T-bill that matures in 229 days. The T-bill has a discount...
Imagine there is a $100,000 T-bill that matures in 229 days. The T-bill has a discount yield of 3.629%. Ignoring fees or commissions, how much in dollars would I pay for this T-bill? (Answer in $ format xxxxx.xx, with no $ sign needed.)
Homework Answers
| Bank discount/Quoted yield = ((Face value-T bill price)/Face value)*360/n |
| 0.03629 = ((100000-T bill price)/100000)*360/229 |
| T bill price = 97691.55 |
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