Question
A dealer has quoted the following rates on $1 M of T-bills with 47 days to maturity: Bid Discount = 1.06; Ask Discount = 1.04.
A dealer has quoted the following rates on $1 M of T-bills with 47 days to maturity: Bid Discount = 1.06; Ask Discount = 1.04. If you were selling the T-bills to this dealer, how much would you get?
Correct Answer is $998,616
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
3rd Edition
0471375942, 978-0471375944
