N. Trest bought a $10,000 Treasury bill at a 2.38% discount for 13 weeks (91 days). How much does N pay for the bond?

Name: N. Trest bought a $10,000 Treasury bill at a 2.38% discount for 13 weeks (91 days). How much does N pay for the bond?
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Question

Quizplus · Accepted Answer

The purchase price of the Treasury bill can be calculated by subtracting the discount from the face value. The discount is calculated as ($10,000 * 2.38% * 91/365), which equals $59.34. Therefore, N pays $10,000 - $59.34 = $9,940.66 for the bond.

N Trest Bought a $10,000 Treasury Bill at a 2