A 91-day Treasury bill with a face value of $1 million is sold to yield 5.27 percent.

Question:

A 91-day Treasury bill with a face value of $1 million is sold to yield 5.27 percent.
a. At what price did the T -bill sell if the yield was quoted by the market?
b. At what price did the T -bill sell if the yield was an effective annual yield?

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...

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