What Is the Bank Discount Rate on a $100,000 Face

question 5

Multiple Choice

What is the bank discount rate on a $100,000 face value T-bill priced at $97,500, maturing in 181days?

• A) 2.50%
• B) 4.84%
• C) 4.97%
• D) 5.10%
• E) 5.17%

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Definitions:

Paracelsus

A Swiss physician and alchemist of the early Renaissance, known for founding the discipline of toxicology and emphasizing the importance of chemistry to medicine.

Psychic Conflicts

Internal struggles between different parts of the psyche, typically involving the conscious and unconscious mind, leading to mental distress or neurosis.

Hypnotism

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes to modify behaviors, perceptions, and psychological distress.

Distress

A negative psychological state that arises from situations of strain or difficulty, causing anxiety or suffering.