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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Securities Market Segments

Ms. Rao buys a 91-day Treasury Bill with face value Rs 100 at a price of Rs 98.50. What is the approximate annualised yield, using a 365-day year and simple interest on the purchase price?

The T-Bill yield is the gain of Rs 1.50 divided by the purchase price of Rs 98.50, which is about 1.52% over 91 days. Annualising by multiplying by 365/91 gives roughly 6.1%, so about 6.09% is the closest figure offered.

  1. A6.09%Correct
  2. B5.95%
  3. C1.52%
  4. D6.20%

Explanation

Gain = 100 - 98.50 = 1.50. Return for 91 days = 1.50/98.50 = 1.5228%. Annualised = 1.5228% x 365/91 = 6.108%, approximately 6.09-6.11. Working precisely: 1.5228 x 4.011 = 6.108. Check against options: 6.09% is closest only if rounded differently, so recompute: 1.5228 x 4.0110 = 6.1080. Option 1 is therefore the nearest.

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