A Newly Issued T-Bill with a $10,000 Par Value Sells

question 39

Multiple Choice

A newly issued T-bill with a $10,000 par value sells for $9,750, and has a 90-day maturity. What is the discount?

• A)10.26 percent
• B)0.26 percent
• C)$2,500
• D)10.00 percent
• E)11.00 percent

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Definitions:

Subdivisions

The act of dividing something into smaller parts or sections.

Home Prices

Refers to the cost at which houses are bought and sold in the real estate market.

Null Hypothesis

A default hypothesis in statistical inference that suggests no statistical significance or effect exists within a set of observations.

Significance Level

A threshold in hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true, commonly denoted as alpha (α).