Cryptocurrency Q&A
How much does a $1000 treasury bill cost?
How much does a $1000 treasury bill cost?
EnchantedMoon
Wed Oct 23 2024
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5 answers
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I am considering purchasing a treasury bill with a face value of $1000. However, I am not sure about its actual cost in the market. Could someone please tell me how much a $1000 treasury bill would approximately cost?
5 answers
GeishaMelodious
Fri Oct 25 2024
The purchase price of a 1-year T-bill is determined based on its face value and annual yield.
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Lucia
Thu Oct 24 2024
However, for simplicity, we can use the close approximation of $950 as the purchase price.
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EthereumElite
Thu Oct 24 2024
For instance, if you decide to buy a T-bill with a face value of $1,000, the amount you pay upfront will depend on the annual yield.
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SakuraDance
Thu Oct 24 2024
Assuming the annual yield is 5%, you would pay approximately $950 for the T-bill.
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ShintoSanctuary
Thu Oct 24 2024
This upfront payment is calculated using the discount rate formula, which takes into account the face value, annual yield, and the time period of the T-bill.
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