On March 2, a Treasury bill expiring on April 20 had a bid discount of 5.80, and an ask discount of 5.86. What is the best estimate of the risk-free rate as given in the text?
A) 5.86 %
B) 5.83 %
C) 6.11 %
D) 6.14 %
E) none of the above

Question

Quizplus · Accepted Answer

The Answer of On March 2, a Treasury bill expiring on April 20 had a bid discount of 5.80, and an ask discount of 5.86. What is the best estimate of the risk-free rate as given in the text?
A) 5.86 %
B) 5.83 %
C) 6.11 %
D) 6.14 %
E) none of the above

On March 2, a Treasury Bill Expiring on April 20