The duration of a 180-day T-Bill is (in years)
A)0.493.
B)0.246.
C)1.
D)0.
E)indeterminate.

Name: The duration of a 180-day T-Bill is (in years) A)0.493. B)0.246. C)1. D)0. E)indeterminate.
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Question

Quizplus · Accepted Answer

The duration of a 180-day T-Bill, which is a short-term debt obligation backed by the U.S. Treasury with a maturity of one year or less, is calculated by dividing the days to maturity by 365 to convert it into years. Therefore, for a 180-day T-Bill, the duration in years is 180/365 = 0.493 years.

The Duration of a 180-Day T-Bill Is (In Years)