The Purchaser of a 168-Day T-Bill with a Face Value

question 154

Short Answer

The purchaser of a 168-day T-bill with a face value of $100,000 paid $98,929.92 for it. After 50 days, interest rates had increased and she sold the T-bill at 2.85%. What price did she receive for the T-bill?

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Definitions:

Ethmoidal Sinus

Air cells within the ethmoid bone, part of the paranasal sinuses, located between the nose and the eyes.

Maxillary Sinus

Air-filled cavities located within the bone of the upper jaw, part of the paranasal sinuses.

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and provides attachment points for neck and pharynx muscles, aiding in swallowing and speech.

Swallowing

The process by which food or liquid moves through the mouth, pharynx, and esophagus into the stomach.