Question: QR T-Bill = [(Face Value - Price)/(Face Value)] / [time in years based on 1 year = 360 days] Jenna decides to purchase a U.S.

QR T-Bill = [(Face Value - Price)/(Face Value)] / [time in

QR T-Bill = [(Face Value - Price)/(Face Value)] / [time in years based on 1 year = 360 days]

Jenna decides to purchase a U.S. Treasury Bill for 95,000. The Treasury Bill matures in 180 days for 100,000. Let QR be the quoted rate on this U.S. Treasury Bill. Let j be the annual effective yield on this U.S. Treasury Bill assuming a 365 day year. Calculate j -QR. A. 0.25% B. 0.40% C. 0.65% D. 0.96% E. 1.23%

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