A company issues a 90-day bill with a face value of $100 000,yielding 7.65% per annum.What amount would the company raise on the issue?
A) $84 130.46
B) $92 350.21
C) $98 123.39
D) $98 148.62

Question

Quizplus · Accepted Answer

The amount raised is calculated using the formula for the present value of a bill: Present Value = Face Value / (1 + (yield * days/365)). Plugging in the values: $100,000 / (1 + (0.0765 * 90/365)) = $98,148.62.

A Company Issues a 90-Day Bill with a Face Value