On march 2 a treasury bill expiring on april 20 had a bid


On March 2, a Treasury bill expiring on April 20 had a bid discount of 5.86, and an ask discount of 5.80. What is the best estimate of the risk-free rate as given in the text?

a. 5.86 %

b. 5.83 %

c. 6.11 %

d. 6.14 %

e. none of the above

The answer is C but how to calculate it?

Solution Preview :

Prepared by a verified Expert
Finance Basics: On march 2 a treasury bill expiring on april 20 had a bid
Reference No:- TGS02519821

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)