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What is the price of a U.S. Treasury bill with 87 days to maturity quoted at...

What is the price of a U.S. Treasury bill with 87 days to maturity quoted at a discount yield of 2.15 percent? Assume a $1 million face value. (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Answer #1

Discount yield= { [Face value -purchase cost]/purchase cost}*365/n

    .0215 = {[1,000,000- P]/P}*365/87

     .0215 *87/365 = {[1000000-P]/P

       .005125 P = 1000000- P

        .005125 P + P = 1000000

          1.005125 P = 1000000

         P = 1000000/1.005125

          = $ 994,901.13

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