You are considering the purchase of a Treasury-Bill with a face value of $10,000, which matures in 137 days. The bond is currently selling for $9,884.27. At this price, what is the prevailing yield-to-maturity on the instrument? 0.50% 3.27% 1.17% 3.15%

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.