Question: We all know that three month Treasury bill rate could be used as risk free rate. Image that the Treasury just issued a three month

We all know that three month Treasury bill rate could be used as risk free rate. Image that the Treasury just issued a three month Treasury bill, which is going to mature in the next three months. The yield of this T-bill is 0.2% annually. How much will you pay for this T-bill? (hint: three month = 0.25 year, so use 0.25 for nper. No coupon paid for T-bill. Par=1000. Calculate for price). $999.50 $998.30 $997.50 $996.30

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