# A $10,000 T-bill has a required return (stated as an EAR) of 2.5 percent and will mature in 130... ## Question: A$10,000 T-bill has a required return (stated as an EAR) of 2.5 percent and will mature in 130 days.

A. What is the current price of the T-bill?

B. What is the T-bill Yield?

C. What is the T-bill Discount?

## Treasury Bill:

Treasury bill is a debt security issued by the government to generate capital. Treasury bills could be issued for less than a year or for 30 years. The bill is issued at a discount and the investor gets paid the face value at maturity.

Given:

Face value = $10,000 Rate = 2.50% n = 130 Days A. {eq}Current \ price \ = \ \$10,000 \ \times \ \left ( 1 \ + \ \frac{2.5\%}{365} \right...

Become a Study.com member to unlock this answer! Create your account