alleryA 91-day Treasury bill of face value 1,00,000 bought for 96,000 earns the investor:
A4,000
B6,000
C8,000
D9,600
Answer & Solution
Correct answer: A. 4,000
1. The bill is repaid at par on maturity.
2. Subtract the price paid from the face value.
3. The interest is 4,000.
_Source: syllabus Business Studies Part II, Chapter 10, Financial Markets._
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