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Question 169.2. The price of a 182-day U.S. Treasury bill is Quoted as 5.20. What is the Cash Price for a purchase of $1 million in face value? | Financial Risk Manager Part 1 Quiz - LeetQuiz

Explanation:

Use the discount price formula per $100 face value:

Y = 100 - P\cdot\frac{n}{360}

Substitute:

Y = 100 - 5.20\cdot\frac{182}{360} = 97.3711

For $1,000,000 face value:

97.3711\times\frac{1,000,000}{100} = 973,711.11

So the correct answer is $973,711.

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Question 169.2. The price of a 182-day U.S. Treasury bill is Quoted as 5.20. What is the Cash Price for a purchase of `$1` million in face value?