What would they be willing to pay for the t-bill

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How would you solve the following problem? I am not quite understanding it. If it makes it better can we change the numbers for an example then I can try solving it with the numbers I provided?

An investor is considering the purchase of a T-bill with a $100,000 face value that matures in 115 days. If the current discount rate for such a T-bill is 55 BP (basis points), what would they be willing to pay for the T-bill?

Reference no: EM132083459

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