In the Treasury bill quote that follows, the price of the bill can be calculated from the price.
$$\frac { \text { Mat. Hate } } { 9 - 24 } \quad \frac { \text { Bid } } { 8.34 } \quad \frac { \text { Asked } } { 8.29 } \quad \frac { \text { Yiele } } { 8.58 }$$
A)bid
B)asked
C)yield
D)none of these

Question

Quizplus · Accepted Answer

The price can be calculated from the bid or asked price, as they represent the price at which the bill can be bought or sold in the market. The formula to calculate the price is: price = 100 - (bid/asked price). Using this formula, we get:
Price = 100 - (8.34) = 91.66 or
Price = 100 - (8.29) = 91.71
Therefore, the answer is either bid or asked, but since the question asks for the best choice, we choose B because the asked price is usually the lower of the two and should be closer to the market price. Yield and maturity date are not used to calculate the price of the bill.

In the Treasury Bill Quote That Follows, the Price of the Bill