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YouTube T3-24: Quote versus cash price of US Treasury bill

Nicole Seaman

Chief Admin Officer
Staff member
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A US Treasury bill is a (money market) discount instrument: the quoted price represents a discount from the face value. In this example, a quote price of 8.00 on a 90-day US Treasury bill implies a cash price of $98.00 and a true interest rate of 8.163% per annum

David's XLS is here: https://trtl.bz/2vjl0HM

 
Last edited:

danghara

Member
Subscriber
Hello

Correct formula:
y% = Q% / (1 - Q% * n/360)

Wrong formula(in video):
y% = Q% / (1 + Q% * n/360)
 
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