The U.S. government borrows money by selling Treasury bills. Treasury bills are discounted notes issued by the U.S. government. On November 14, 2014, Kris purchased a 364-day, $1000 U.S. Treasury bill at a 0.15% discount. On the date of maturity, Kris will receive $1000.

(a) What is the date of maturity of the Treasury bill? 

(b) How much did Kris actually pay for the Treasury bill?

(c) How much interest did the U.S. government pay Kris on the date of maturity?

(d) What is the actual rate of interest of the Treasury bill? Round the answer to the nearest ten-thousandths of a percent.

Transcribed Image Text:

A United States Treasury building, Washington, D.C.