Question

Suppose current interest rate is 6% what price should one expect to pay for 3 month treasury bill with face value of $10000 that is one month?

Answer 1

Solve by the formula

P=10 000

R=6

N=30

B=360

$S=10000\times(1− \frac{6\times30}{360\times100})=10000×0.995=9950$