None The yield on a bank discount basis on a T-billwith 90 days to maturity and $1 million facevalue is 8%. What is the price of the T-bill,considering 360 days in a year?Select an optionClear Response$24,000$16,000$18,000O $20,000

Face value of Tbill=$1000000Maturity period=90 daysYield of bill=8%Year= 360 days

Answered: with 90 days to maturity and $1 million…

with 90 days to maturity and $1 million fa value is 8%. What is the price of the T-bill, considering 360 days in a year? Select an option Clear F $24,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

None

The yield on a bank discount basis on a T-bill
with 90 days to maturity and $1 million face
value is 8%. What is the price of the T-bill,
considering 360 days in a year?
Select an option
Clear Response
$24,000
$16,000
$18,000
O $20,000

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