A 182-day T-Bill with a face value of $50,000 is purchased for $X by an investor who wishes to yield r = 2.85%.What is X?
A)$49,289.45
B)$49,299.41
C)$50,720.42
D)$50,710.55

Question

Quizplus · Accepted Answer

Using the formula for the price of a T-bill:

Price = Face Value / (1 + r x days/360)

Plugging in the given values:

X = $50,000 / (1 + 0.0285 x 182/360)
X = $49,299.41

Therefore, the answer is choice B.

A 182-Day T-Bill with a Face Value of $50,000 Is