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

question 123

Short Answer

The purchaser of a 168-day T-bill with a face value of $100,000 paid $98,929.92 for it. She then sold the T-bill to a client at a rate of interest of 2%. What profit did she realize on the sale?

---

Definitions:

Market Price

The current market rate at which one can purchase or sell a service or asset.

Acquisition

The procedure through which a business buys out most or all shares of another business to achieve authority over it.

Stockholders

Individuals or entities that own shares of stock in a corporation, giving them partial ownership of the company.

Acquiring Firms

Companies involved in the process of buying or merging with other companies to increase their size and capabilities.