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C. Status report
D. Issue log
Answer: D
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If the quoted discount rate of a 3 month treasury bill futures contract is 10%, what is the price of a 3-month treasury bill with a principal at maturity of $100?
A. $102.50
B. $110.00
C. $90
D. $97.50
Answer: D
Explanation:
Explanation
T-bill futures 'discount' can be converted to a price for the bill using the formula Price = [1 - discount * number of days/360]. In this case, this works out to (1- 10% *90/360) * 100 = $97.50. Choice 'd' is the correct answer.
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