GFOA CPFO Exam - Topic 3 Question 130 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 130
Topic #: 3

[All CPFO Questions]

A city buys a T-bill with a face value of $10,000 for $9,800. The bill matures in 91 days. What is the yield?

A8.007%

B8.07%

C8.70%

D87.07%

Show Suggested Answer

Suggested Answer: B

by Marya at Jul 17, 2026, 03:26 AM

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Sylvie

3 days ago

I think the yield is important for understanding returns.

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Shad

8 days ago

Can someone explain how they got that yield?

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Lettie

13 days ago

Totally agree, it’s gotta be B, 8.07%!

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Mariko

18 days ago

Wait, how can it be over 8%? That seems high for 91 days.

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Linwood

23 days ago

I think it’s definitely around 8%.

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Brittani

28 days ago

The yield is calculated based on the discount and the face value.

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Mari

1 month ago

I’m leaning towards option B, 8.07%, but I need to double-check my calculations to be sure.

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Louvenia

1 month ago

I feel like the answer should be a percentage, but I’m confused about whether to multiply by 360 or 365 days for the annualization part.

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Daniela

1 month ago

I remember a similar question where we had to calculate the yield on a bond. I think we used a formula that involved the time to maturity, but I can't recall the exact steps.

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Vi

2 months ago

I think the yield calculation involves the difference between the face value and the purchase price, but I'm not entirely sure how to convert that to an annual yield.

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