A Treasury Bill with a July 11th Maturity Date Is

question 127

Multiple Choice

A Treasury bill with a July 11th maturity date is quoted today at 8.46 bid and 8.40 asked.How much would you pay today (January 11th) for one bill?

• A)$9,577
• B)$9,580
• C)$9,588
• D)$8,400

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Definitions:

Gilts

British and Irish government securities, including issues of local British authorities and some overseas public-sector offerings.

Government Securities

Financial instruments issued by the government to raise funds from the public, including bonds, notes, and bills, generally considered low-risk investments.

Forward Rate

An interest rate agreed upon today for a loan that will start at a future date, reflecting expectations of future interest rates.

Future Rate

The future rate is a predicted interest or exchange rate based on current and expected future economic conditions, affecting loans, investments, and financial planning.