A $1,000,000 Face Value Treasury Bill with 49 Days to Maturity

question 6

Multiple Choice

A $1,000,000 face value Treasury bill with 49 days to maturity is currently selling for $991,650. What is the effective annual rate?

• A) 6.61%
• B) 6.57%
• C) 6.39%
• D) 6.53%
• E) 6.45%

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Definitions:

Matching

An accounting principle that requires expenses to be matched with the revenues generated in the same period, ensuring accurate earnings measurement.