A U.S. Treasury bill is currently selling at a discount basis of 0.25%. The par value of the bill is $100,000 and will mature in thirty days. What is the price of this Treasury bill?
A) $98,850.25
B) $99,830.00
C) $99,875.00
D) $99,979.17
Answer: D
Explanation: D) Price = face value × [1 - (discount rate × )]
= $100,000 × [1 - (.0025 × 30/360)] = $99,979.17
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