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Explanation:

Using the T-bill discount quotation formula per $100 face value:

P = \frac{360}{n}(100 - Y)

where:

$P$ = quoted discount rate
$n$ = days to maturity
$Y$ = cash price per $100 face value

Solve for cash price:

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

Substitute the values:

Y = 100 - 4.50\cdot\frac{28}{360} = 99.65

For $1,000,000 face value:

99.65\times\frac{1,000,000}{100} = 996,500

So the correct answer is $996,500.

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Question 169.1. The Quoted Price (a.k.a., discount yield) of a 28-day U.S. Treasury bill is 4.50. What is the Cash Price for a purchase of $1 million in face value? | Financial Risk Manager Part 1 Quiz - LeetQuiz