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Interest rate paid by the treasury

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Reference no: EM131187395

The given treasury bill was sold in April of this year. Find (i) the price of the T-Bill, and (ii) the actual interest rate paid by the treasury. Round dollars to the nearest cent and interest rates to the nearest thousandth.

Three-month $5,000 T-Bill with discount rate 0.120%

A.)  (i) $5,000.50 (ii) About 0.12%

B.)  (i) $4,998.20 (ii) About 0.144%

C.)  (i) $4,998.50 (ii) About 0.12%

D.)  (i) $4,999.85 (ii) About 0.012%

Reference no: EM131187395

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