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A T-bill has an asked (or discount yield) on Nov 3, 2016 (160) days from settlement of May 1st) is .421%. The price is:

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Answer:

Assuming that the T-bill's face value is $10,000

n = 160 days

discount rate = 0.421%

we can use the following formula to determine the market value:

market price of the T-bill = face value - (discount rate x days until maturity/360 days x face value)

market price of the T-bill = $10,000 - (0.421% x 160/360 x $10,000) = $10,000 - $18.71 = $9,981.29

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