PRMIA Exam 8006 Topic 8 Question 26 Discussion

Actual exam question for PRMIA's Exam I: Finance Theory, Financial Instruments, Financial Markets ? 2015 Edition exam

Question #: 26
Topic #: 8

What is the price of a treasury bill with $100 face maturing in 90 days and yielding 5%?

A$95.24

B$95.00

C$98.78

D$101.23

Show Suggested Answer

Suggested Answer: C

The price of a treasury bill can be calculated as [Future value / (1 + yield x days-to-maturity/365)] = 100/(1+5%*90/365) = $98.78.

by Ernest at May 09, 2022, 03:50 PM

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