A one-year $1,000 T-bill is issued at a price of $961.54 and offers a 4% yield. What is the new price if the yield decreases to 3%?

A. The new price is $970.87.

B. The new price is $985.25.

C. The new price is $958.78

D. The new price is $893.15.

A one-year $1,000 T-bill is offering a 10% yield. What price must an investor pay if she wants to buy the bond today?

A. The price of the bond is $909.09.

B. The price of the bond is $1,000.

C. The price of the bond is $965.24.

D. The price of the bond is $983.65.