Quantitative Methods Q77

0. A T-Bill with a par value of $100,000 and 120 days to maturity has a bank discount yield of 5.2 percent. The current price of the T-Bill is closest to:

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Option : B
Explanation : The dollar discount is: 1, 733.33 = 0.052 ∗ 100, 000 ∗ ( 120). The price would be $98,266.67 = 100,000 – 1,733.33.

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