What Is the Price of a 183-Day Canadian T-Bill with a Par

question 9

Multiple Choice

What is the price of a 183-day Canadian T-bill with a par value of $5,000 that has a quoted yield of 1.1%?

• A)$4,892.66
• B)$4, 945.60
• C)$4,972.58
• D)$9,864.17

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Definitions:

Earnings Per Share

A financial metric calculated by dividing the net earnings available to common shareholders by the average outstanding shares.

Closing Price

The final price at which a security is traded on a given trading day, often used for performance assessment.

Default Risk Premium

The additional return that an investor demands for taking on the risk that the borrower may default on the loan.

Liquidity Risk Premium

An additional return that investors require for holding securities with less liquidity, compensating for the risk of not being able to sell quickly at the fair market price.