What is the bank discount rate on a $100,000 face value T-bill priced at $97,500, maturing in 181days?

Name: What is the bank discount rate on a $100,000 face value T-bill priced at $97,500, maturing in 181days?
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Question

Quizplus · Accepted Answer

The bank discount rate is calculated using the formula: ((Face Value - Purchase Price) / Face Value) * (360 / Days to Maturity). Substituting the given values: (($100,000 - $97,500) / $100,000) * (360 / 181) = 4.97%.

What Is the Bank Discount Rate on a $100,000 Face