The annualized discount rate on a particular money market instrument, is 3 75 The face value is $200,000, and it matures in 51 days What is its price What would be the price if it had 71 days to maturity ...

Let B the price with 51 days to maturity 200000 ...

The annualized discount rate on a particular money market instrument, is 3.75%. The face value is $200,000,

Question:

The annualized on a particular money market instrument, is 3.75%. The is $200,000, and it matures in 51 days. What is its price? What would be the price if it had 71 days to maturity?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...