AFP
CTP · Question #676
(Topic 7) T-bill discount rate = 5.85% T-bill face value = $100,000 Initial term = 90 days If the U.S. Treasury was considering issuing a 91-day T-bill at the same time as this T-bill, what discount…
The correct answer is B. 5.79%. See the full explanation below for the reasoning.
Question
- (Topic 7)
T-bill discount rate = 5.85% T-bill face value = $100,000 Initial term = 90 days If the U.S. Treasury was considering issuing a 91-day T-bill at the same time as this T-bill, what discount rate would cause both instruments to have the same purchase price?
Options
- A5.71%
- B5.79%
- C5.87%
- D5.92%
How the community answered
(27 responses)- A15% (4)
- B78% (21)
- C4% (1)
- D4% (1)
Community Discussion
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