Joshua has decided that he will only purchase a one-year Treasury bill with a face value of $500 000 if he receives an interest rate of 6.25%.How much will Joshua end up paying for this Treasury bill?

Question

Quizplus · Accepted Answer

The price of a Treasury bill is calculated as the face value divided by (1 + interest rate). So, $500,000 / (1 + 0.0625) = $470,588.24, which rounds to $470,588.

Joshua Has Decided That He Will Only Purchase a One-Year