Assume a $1,000 Treasury bill is quoted to pay 6% interest over a three-month period. What will be the price of the Treasury bill? The interest on a Treasury bill is treated on a discount basis; that is, it is subtracted from the $1,000 face value to get the purchase price. Interst = %6 x 1/4 = %1.5 x $1000 = $15 / Price = $1000-$15 = $985.... Is the price of the Treasury bill $940,$970,$980,$985, or $990.