The quoted price on a 91-day Treasury bill is 5. What is the cash price of the bill?
A) 95.00
B) 98.50
C) 98.74
D) 98.75

Name: The quoted price on a 91-day Treasury bill is 5. What is the cash price of the bill? A) 95.00 B) 98.50 C) 98.74 D) 98.75
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Question

Quizplus · Accepted Answer

The cash price of a Treasury bill can be calculated using the following formula: Cash Price = Face Value x (1 - Discount Rate x Time/360). Using this formula: Cash Price = 100 x (1 - 0.05 x 91/360) = 98.74. Therefore, choice C is the correct answer.

The Quoted Price on a 91-Day Treasury Bill Is 5