An investor purchased 220500QAR in 365-day T-bills 300 days before maturity to yield 3.25%. The investor sold the T-bill 145 days later to yield 3.55%.

How much did the investor sell the T-bill for?

Answer:

Formula :

Face Value = Price * (1+ Yield * t /365)

Where,

Face Value = 220500 QAR

Yield = 3.55% = 0.0355

Price = Sale price ( we need to find out this)

t = Number of days in maturiy = 300 - 145 = 155 days

Therefore putting the above value in the given formula, we will get

220500 = Price * (1+ 0.0355 * 155/365)

220500 = Price * 1.015075

Price = 220500 / 1.015075

Price = 217225

Investor sell the T-bill for 217225 QAR