If a Company Sells (Discounts)a Bank Bill with a Face

Multiple Choice

If a company sells (discounts) a bank bill with a face value of $500 000,a term to maturity of 120 days,and a yield of 8.45% per annum,how much will the company raise on the issue? (Ignore transaction fees.)

A) $391 295.03
B) $445 312.02
C) $486 485.05
D) $486 302.48