The duration of a 91-day T-Bill is (in years).
A)0.325
B)0.249
C)0.715
D)0
E)Indeterminate

Question

Quizplus · Accepted Answer

T-Bills are short-term debt securities issued by the U.S. government. The duration of a T-Bill is typically less than one year. To calculate the duration of a T-Bill, we need to convert the number of days to years.

Duration = (Days/365)

Therefore, the duration of a 91-day T-Bill is:
Duration = (91/365) = 0.249 years.

Thus, the best choice is B.

The Duration of a 91-Day T-Bill Is (In Years)