A Treasury Bill Has a Face Value of $100,000,a Price

question 91

Multiple Choice

A Treasury bill has a face value of $100,000,a price of $99,797.12,and matures in 35 days.What is the asked yield?

• A) 1.98 percent
• B) 2.12 percent
• C) 2.28 percent
• D) 3.67 percent
• E) 3.74 percent

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Definitions:

Money Market Instrument

Short-term debt instruments, typically with maturities of less than one year, traded in the money market, including treasury bills, commercial paper, and certificates of deposit.

Maturity

The expiration date of a financial instrument, at which point the principal is to be paid back to investors.

Emerging Market Country

Refers to a nation with social or business activity in the process of rapid growth and industrialization.

Brazil

A South American country known for its diverse culture, rainforest, and large economy, also a significant player in global agricultural and energy markets.