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vaieri [72.5K]
3 years ago
10

A T-bill quote sheet has 90-day T-bill quotes with a 5.77 ask and a 5.71 bid. If the bill has a $10,000 face value, an investor

could sell this bill for _____.
a. $9,857.25
b. $9,855.75
c. $9,859.21
d. $10,000
Business
1 answer:
Leona [35]3 years ago
6 0

Answer:

a. $9,857.25

Explanation:

Price = Face value * (1 - Bid*Days/360)

Price = $10,000 * (1 - 5.71%*90/360)

Price = $10,000 * (1 - 5.71%*0.25)

Price = $10,000 * (1 - 0.014275)

Price = $10,000 * 0.985725

Price = $9,857.25

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