What is the price of a bill with 45 days to maturity,a face value of $1 000 000 and a yield of 6.75% p.a.?

A) $ \$ 979174.76 $
B) $ \$ 983032.59 $
C) $ \$ 991746.76 $
D) $ \$ 994382.15 $

Question

What is the price of a bill with 45 days to maturity,a face value of $1 000 000 and a yield of 6.75% p.a.?

A) $ \$ 979174.76 $
B) $ \$ 983032.59 $
C) $ \$ 991746.76 $
D) $ \$ 994382.15 $

Quizplus · Accepted Answer

Following example 15.4,page 514,we can compute the price of the bill as follows: P = 1000000/[1 + (0.0675)(45/365)] = $991746.76.

What Is the Price of a Bill with 45 Days $979174.76 \$ 979174.76 $979174.76