A Treasury Bill Currently Sells for $9,845,has a Face Value

question 45

Multiple Choice

A treasury bill currently sells for $9,845,has a face value of $10,000 and has 46 days to maturity.What is the bank discount rate on this security?

• A)12.49 percent
• B)12.13 percent
• C)12.30 percent
• D)2 percent
• E)None of the options is correct.

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Definitions:

Stated Rate

The annual interest rate stated on a bond or loan, without accounting for compounding or other effects.

Rate Of Return

Refers to the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Insurance Agent

A professional authorized to sell and service insurance policies, representing either one or multiple insurance companies.

Annuity

A monetary tool that disburses a set sequence of payments to a user, predominantly aimed at serving as a financial resource for retirees.