You Bought a $100 000 364-Day T-Bill

Multiple Choice

You bought a $100 000 364-day T-bill. The T-bill was discounted at a rate of 5%. If you paid $99 900.00 for the T-bill, how many days before maturity did you buy it?

A) 7.3 days
B) 3.7 days
C) 37 days
D) 73 days
E) 1 day