If a $10,000 T-bill is purchased for $9,600 and matures in 270 days, what will be the annualized return? (Round to the nearest hundredth of a percent.)
A) 4.01%
B) 4.17%
C) 5.63%
D) 2.85

Question

Quizplus · Accepted Answer

The annualized return is calculated using the formula: [(Face Value - Purchase Price) / Purchase Price] * (365 / Days to Maturity). Plugging in the values: [($10,000 - $9,600) / $9,600] * (365 / 270) = 5.63%.

If a $10,000 T-Bill Is Purchased for $9,600 and Matures