At what price could an investor purchase the following T-Bill? $$\begin{array}{l}
\text { }&\
\begin{array} { l l l l l l }
\text {Days to Maturity }&\text {Bid }&\text { Asked}&\text {Chg. }&\text { Ask Yield}\585&6.01&5.97&+0.01&6.11
\end{array}
\end{array}$$
A) $9,897.16
B) $9,903.17
C) $9,903.82
D) $9,901.56
E) $9,905.43

Question

At what price could an investor purchase the following T-Bill? $$\begin{array}{l}
\text { }&\
\begin{array} { l l l l l l } 
\text {Days to Maturity  }&\text {Bid }&\text {  Asked}&\text {Chg. }&\text { Ask Yield}\585&6.01&5.97&+0.01&6.11
\end{array}
\end{array}$$
A) $9,897.16
B) $9,903.17
C) $9,903.82
D) $9,901.56
E) $9,905.43

Quizplus · Accepted Answer

The price of a T-Bill can be calculated using the formula: Price = Face Value / (1 + (Ask Yield * (Days to Maturity / 360))). Using the given Ask Yield of 5.97% and 585 days to maturity, the price is approximately $9,903.82.

At What Price Could an Investor Purchase the Following T-Bill