Solve the problem.
-You purchase a 200-day, $1000 U.S. Treasury bill at 0.49% discount. On the date of maturity, you Will receive $1000. How much interest does the U.S. government pay to you on the date of Maturity?
A) $2.72
B) $2.45
C) $5.72
D) $2.99

Question

Quizplus · Accepted Answer

The interest is calculated as the discount on the face value. The discount is 0.49% of $1000, which is $1000 * 0.0049 = $4.90. However, since the problem asks for the interest paid at maturity, we need to calculate the interest for the 200-day period. The annual interest would be $4.90, but for 200 days, it is ($4.90/360)*200 = $2.72.

Solve the Problem. -You Purchase a 200-Day, $1000 U.S. Treasury Bill at 0.49