A U.S. Treasury bill is currently selling at a discount basis of 2.25%. The par value of the bill is $100,000, and will mature in 180 days. What is the price of this Treasury bill?
A) $98,875.00
B) $98,937.50
C) $98,975.00
D) $99,500.00
Answer: A
Explanation: A) Price=face value × [1 - (discount rate × )]
= $100,000 × [1 - (.0225 × 180/360)] = $98,875.00
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