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**CFA Practice Question**

A T-bill with 60 days to maturity and par value $1,000 has a discount rate of 3.6%. What is its price?

A. 994.00

B. 994.08

C. 964.00

**Explanation:**While quoting 90 day T-bill Futures price, the discount is annualized simply by multiplying by 4. Also number of days in a year is taken as 360 rather than 365.

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**User Contributed Comments**
2

User |
Comment |
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jpducros |
3,6 % is annual based discount = > 3,6/360 * 60 = 6 = Discount |

cfastudypl |
thanks jpducros, |