N. Trest bought a $10,000 Treasury bill at a 1.32% discount for 13 weeks (91 days). How much does N pay for the bond?
A) $10,000
B) $9,967.09
C) $9,870.54
D) $9,685.90

Question

Quizplus · Accepted Answer

The purchase price of the Treasury bill can be calculated using the formula: Purchase Price = Face Value - (Discount Rate * Face Value * (Days to Maturity/360)). For this question, it's $10,000 - ($10,000 * 0.0132 * (91/360)) = $9,967.09.

N Trest Bought a $10,000 Treasury Bill at a 1