What is the present value of a 3 month T-Bill?

Hi everyone. I've been given the following information on a 91 day treasury bill and need to convert it from book value to market value.

Maturity = 91 days
Annual Interest = 0.75%
Book Value = $150 million

No payment because it is a zero-coupon bond.

I used the financial calculator and got a present value of $149,720,061 using N=1/4, I/Y=0.75, FV=150M, PMT=0. I'm not sure if this is right, however, as I think that the interest rate needs to be multiplied by 4.

Any thoughts? Thanks in advance!

 

Laudantium soluta recusandae ratione enim fuga earum laboriosam odio. Voluptas quo assumenda sapiente beatae quos officiis delectus. Voluptatem sit quis odio voluptatem eveniet voluptatem. Non commodi ipsa repudiandae distinctio deserunt ipsam aut.

Aut numquam ea aperiam quod nisi. Asperiores est maxime soluta maiores deleniti quibusdam et. Maxime id autem error.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
dosk17's picture
dosk17
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”