Solved: If the current discount rate for such a t-bill is 55 bp, Finance Basics

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If the current discount rate for such a t-bill is 55 bp

How would you solve the following problem? I am not quite understanding it. If it makes it better can we change the numbers for an example then I can try solving it with the numbers I provided?

An investor is considering the purchase of a T-bill with a $100,000 face value that matures in 115 days. If the current discount rate for such a T-bill is 55 BP (basis points), what would they be willing to pay for the T-bill?

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Finance Basics: If the current discount rate for such a t-bill is 55 bp

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Finance Basics: If the current discount rate for such a t-bill is 55 bp

Reference No:- TGS02876918

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