If a company sells (discounts) a bank bill with a face value of $500,000, a term to maturity of 120 days, and a yield of 8.45% per annum, how much will the company raise on the issue? (Ignore transaction fees.)

Select one:

a.

$391,295.03

b.

$445,312.02

c.

$486,485.05

d.

$486,302.48