How much would get if want to sell such a t-bill to dealer

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Reference no: EM132955271

Problem 1: A dealer is quoting a bid discount of 0.75 and an ask discount of 0.73 on a T-Bill with a maturity of 125 days. If you want to sell such a T-Bill to the dealer with a face value of $1M, how much would you get for it?

Group of answer choices

Option 1: $997,396

Option 2: $997,465

Option 3: $992,700

Option 4: $998,024

Reference no: EM132955271

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