A one-year Treasury bill with an annual yield of 10 percent and a price of $909.09 has a face value of

Name: A one-year Treasury bill with an annual yield of 10 percent and a price of $909.09 has a face value of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The face value can be calculated using the formula:

Face Value = Price / (1 + Yield/360)

Substituting the given values, we get:

Face Value = $909.09 / (1 + 10%/360) = $1,000

Therefore, the correct answer is option B, $1,000.

A One-Year Treasury Bill with an Annual Yield of 10