Suppose a $10,000 Treasury Bill with 82 days left until maturity is quoted at an asking bank discount rate of 3.20%. What would be the price of this Treasury Bill?
A) $9,727
B) $9,866
C) $9,927
D) $10,000

Question

Quizplus · Accepted Answer

The price of a Treasury Bill can be calculated using the formula: Price = Face Value * (1 - (Discount Rate * (Days to Maturity / 360))). Plugging in the values: Price = $10,000 * (1 - (0.032 * (82 / 360))) = $9,927.

Suppose a $10,000 Treasury Bill with 82 Days Left Until