25.A 181-day Treasury bill has a face value of $10.000 million and a present value of $9.219 million. Assuming a 360-day year, the instruments discount rate is closest to:

A. 4.49%.

B. 15.53%.

C. 16.85%.

26.A floating-rate note (FRN) has a par value of $1,000 and makes semiannual interest payments in June and December at the six-month LIBOR plus spread of200 basis points. On the date, the instrument was issued (January 1, 2012), the six-month LIBOR was 4.5%. In June 2012, LIBOR increased to 5.0% and declined in December 2012 to 3.5%. Which of the following statements is most likely correct with respect to the interest payments due on the FRN?

A. The coupon interest due in June 2012 amounts to $32.50

.B. The coupon interest due in June 2012 amounts to $35.00.

C. The coupon interest due in December 2012 amounts to $42.50.