Question 10

a) On June 1st, when there was 100 days remaining in its term, Jason purchased a 180-day T-bill with a face value of $20,000. The market yield at this time was 2.5%. What was the price that Jason paid for the T-bill?

b) Jason decided to sell the T-bill 45 days later when the market yield was 2%. How much did he sell the T-bill for? How much was his profit or his loss?