At-bill quote sheet has 180-day t-bill quotes with a 3.30 bid and a 3.26 ask. if the bill has a $10,000 face value, an investor could buy this bill for

An investor could buy this bill for $9837 .

We follow these steps to arrive at the

First we calculate the interest on the bill for 180 days, assuming that the value of the T-bill is $1.

We consider the ask rate since this is the rate an investor will get from buying this bill.

A t-bill doesn't pay interest; instead the interest amount is deducted from the Face Value in order to arrive at the purchase price.

If the face value of the t-bill is $1, the purchase price is

Since the actual face value of the t-bill is $10,000, the purchase price is

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12