A 90-day T-Bill is selling for $9,900. The par is $10,000. The effective annual return on the T-Bill is (watch your rounding)

Name: A 90-day T-Bill is selling for $9,900. The par is $10,000. The effective annual return on the T-Bill is (watch your rounding)
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using the formula: 
Effective annual return = (Par value / Price) ^ (365 / days held) - 1 
Effective annual return = (10,000 / 9,900) ^ (365 / 90) - 1 
Effective annual return = 0.0416 or 4.16%

A 90-Day T-Bill Is Selling for $9,900