A holder of a 180-day bill with 60 days left to maturity and a face value of $100 000 chooses to sell it into the market.If 60-day bills are currently yielding 6.8% per annum,what price will be obtained?
A) $81 728.61
B) $89 945.79
C) $97 813.27
D) $98 894.55

Question

Quizplus · Accepted Answer

The price of the bill is calculated using the formula for discounting: Price = Face Value / (1 + (yield * (days to maturity/360))). Substituting the given values: Price = $100,000 / (1 + (0.068 * (60/360))) = $98,894.55.

A Holder of a 180-Day Bill with 60 Days Left