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A T-Bill with a face value of $1,000 is 104 days to maturity. The ask yield...

A T-Bill with a face value of $1,000 is 104 days to maturity. The ask yield is 3.5%. Find the ask price.

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Answer #1

Price = [100-(n*r/360)]

         =[100- (104*3.5/360)]

          = [100- 1.01111]

            = 98.9889

Since a $100 T bill cost 98.9889 so $1000 worth of bill will cost 1000*98.9889/100

                  = $ 989.89

Ask price = $ 989.89

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