The purchase price of the treasury bill is $985.
A Treasury Bill (T-Bill) is a short-term obligation of the United States government backed by the Treasury Department, with a maturity of one year or less. Usually, you can buy $1,000 bills from the Treasury. Amount of purchase, specifically from the viewpoint of the buyer, is the real price paid for anything.
One year or less maturity Treasury notes are a sort of short-term debt security. T-bills are offered in a variety of maturities, although the four, eight, 13, 26 and 52-week durations are the most widely used. The face value, or par amount, of T-bills is offered for sale at a discount.
Discount Amount= Maturity value x Interest rate
= $1,000 x 1.5%
= 15
Purchase Price = Maturity Value- Discount Amount
= $1,000 - 15
= $985
Therefore, the purchase price of the treasury bill is $985.
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