The Purchaser of a 168-Day T-Bill with a Face Value

question 22

Short Answer

The purchaser of a 168-day T-bill with a face value of $100,000 paid $98,929.92 for it. After 50 days, interest rates had increased and she sold the T-bill at 2.85% simple interest. What price did she receive for the T-bill?

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Definitions:

Fourth Amendment

A constitutional amendment in the United States protecting citizens against unreasonable searches and seizures by the government.

Self-Incrimination Clause

A provision in the Fifth Amendment of the U.S. Constitution that protects individuals from being forced to testify against themselves during criminal proceedings.

Subchapter S Corporation

A form of corporation in the U.S. that meets specific Internal Revenue Code requirements and passes income, losses, deductions, and credits to its shareholders for federal tax purposes.

Professional Corporations

A type of corporation for professionals (such as lawyers, doctors, and accountants) that offers certain tax and legal advantages.