As explained by Adams and Smith (2019), suppose that a 91-day Treasury bill (T-bill) with a face value of USD 10 million is quoted at a discount rate of 2.25 percent for an assumed 360-day year. Here, the maturity Value is 10,000,000 (that stand for 10 million US dollars), days to Maturity are 91, days in a year are taken as 360, and money market quoted discount rate is 0.0225. When these values are passed to the method , pricingTbill
, the price of the T-bill works out to be 9,943,125 US dollars. In light of the information given, the method pricingTbill
is developed to compute the Price of a Treasury bill (T-bill) for the values passed to its four arguments. Here, maturityVal
is face value of the T-Bill, daysToMaturity
is number of days till the maturity, daysInYear
are taken to be 360, and mmQuotedDiscRate
is money market quoted Discount Rate.