What is the price of a $100,000 182-day T-bill if the yield rate is 5%?
A)$97,506.85
B)$97,567.50
C)$102,493.15
D)$102,556.90

Question

Quizplus · Accepted Answer

The formula to calculate the price of a T-bill is: Price = Face Value / (1 + (yield x days/360))
Plugging in the given values: 
Price = 100000 / (1 + (0.05 x 182/360)) 
Price = $97,567.50, rounded to the nearest cent. 
Therefore, the correct choice is B.

What Is the Price of a $100,000 182-Day T-Bill If