Answer:
$9,906
Explanation:
As per given data
Discount rate = 3.75%
Number of days to maturity = 90 days
To calculate the price, we need the number of days until maturity and the interest rate. Multiply Number of days until maturity by the interest rate in percent and divide the outcome by 360, (Treasury uses assumptions of 360-day years). Now, subtract the result number from $10,000. It will give you the price of Treasury bill with a face value of $10,000.
Price of T-bill = 10,000 x [1 - ( 0.0375 x 90/360 ) ] = $9,906
