What is the price of 182-day money market security with face value of $7,000 if the BEY is 3.574%?

Question

Quizplus · Accepted Answer

The price of a money market security can be calculated using the formula: Price = Face Value / (1 + (BEY * (days to maturity/360))). Here, the BEY is 3.574% or 0.03574 when converted to decimal, days to maturity is 182 days, and the face value is $7,000. Plugging these values into the formula gives: Price = $7,000 / (1 + (0.03574 * (182/360))) = $6,877.44.

What Is the Price of 182-Day Money Market Security with Face