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Question
91-day Treasury bill rates = 9.71 percent
91-day Treasury bill futures rates = 9.66 percent
(Reminder: Treasury bill prices are calculated using the following formula:
P = FV * (1 - dt/360)
where P = price, FV = face value, d = discount yield, and t = days until maturity.)
What is the basis on the T-bill futures contract?
A. 19 basis points.
B. 21 basis points.
C. 5 basis points.
D. 2 basis points.
E. Insufficient information.
Answer
This answer is hidden. It contains 75 characters.
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