a) On June 1st, when there was 120 days remaining in its term, Jason purchased a 180-day T-bill with a face value of $25,000. The market yield at this time was 3.5%. What was the price that Jason paid for the T-bill?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
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a) On June 1st, when there was 120 days
remaining in its term, Jason purchased a 180-day
T-bill with a face value of $25,000. The market
yield at this time was 3.5%. What was the price
that Jason paid for the T-bill?
Transcribed Image Text:a) On June 1st, when there was 120 days remaining in its term, Jason purchased a 180-day T-bill with a face value of $25,000. The market yield at this time was 3.5%. What was the price that Jason paid for the T-bill?
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