Asked by Shams Fawzi on Jul 12, 2024
Verified
A T-bill quote sheet has 90-day T-bill quotes with a 4.92 ask and a 4.86 bid. If the bill has a $10,000 face value, an investor could sell this bill for ________.
A) $10,000
B) $9,878.50
C) $9,877
D) $9,880.16
T-Bill Quote
The price or interest rate expressed for a Treasury bill; often quoted in terms of discount from face value.
Face Value
The nominal or dollar value printed on a bond or stock certificate; for bonds, it's the amount repaid to the holder at maturity, and for stocks, it is the original cost of the stock.
Bid
An offer made by an investor, trader, or dealer to buy a security, commodity, or currency.
- Grasp the basics of interest rates, yield calculations, and the impact of inflation on investments.
Verified Answer
LM
Learning Objectives
- Grasp the basics of interest rates, yield calculations, and the impact of inflation on investments.