A bank- accepted bill contract is yielding 3.8%.What is the price being quoted by a futures trader?
A)$96.20
B)$100.00
C)$103.80
D)Cannot determine the price

Name: A bank- accepted bill contract is yielding 3.8%.What is the price being quoted by a futures trader? A)$96.20 B)$100.00 C)$103.80 D)Cannot determine the price
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Question

Quizplus · Accepted Answer

The yield of 3.8% implies a discount from the face value of $100. The price is calculated as $100 - 3.8 = $96.20.

A Bank- Accepted Bill Contract Is Yielding 3