Which of the Following Best Expresses the Formula for Determining

question 112

Multiple Choice

Which of the following best expresses the formula for determining the price of a U.S.Treasury bill that matures n periods from now per $100 of face value when the interest rate is i?

• A)$100/(1 + i)n
• B)$100(1 + i)
• C)$100/(1 + i)
• D)1 + $100/(1 + i)n

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Definitions:

Door-to-Door Sales

The direct selling of goods or services to consumers at their homes or places of residence.

Abuses

The improper use or treatment of someone or something, often to unfairly or improperly gain benefit.

Cooling-Off Period

A statutorily defined period during which purchasers in door-to-door sales may change their minds and rescind a contract.

Bill of Exchange

A written order used in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date.