Solve the problem.
-You purchase a 194-day, $1000 U.S. Treasury bill at 0.12% discount. On the date of maturity, you Will receive $1000. How much did you actually pay for the Treasury bill?
A) $1109.35
B) $1000.65
C) $949.35
D) $999.35

Question

Quizplus · Accepted Answer

The discount on the Treasury bill is calculated as $1000 * 0.12% = $1.20. Therefore, the purchase price is $1000 - $1.20 = $998.80, which is not an option provided. However, the closest option to the correct calculation is D) $999.35, indicating a possible mistake in the calculation or the options provided.

Solve the Problem. -You Purchase a 194-Day, $1000 U.S. Treasury Bill at 0.12