Calculate the percentage return on a​ 1-year Treasury bill with a face value of ​$10 comma 000 if you pay ​$9 comma 796.05 to purchase it and receive its full face value at maturity.
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Part 1
The percentage return is

enter your response here​%. ​ (Round to two decimal​ places.)

To calculate the percentage return on the 1-year Treasury bill, we can use the following formula:

\[
\text{Percentage Return} = \left( \frac{\text{Face Value} - \text{Purchase Price}}{\text{Purchase Price}} \right) \times 100
\]

### Given:
- **Face Value** = $10,000
- **Purchase Price** = $9,796.05

Substitute the values into the formula:

\[
\text{Percentage Return} = \left( \frac{10,000 - 9,796.05}{9,796.05} \right) \times 100
\]

Now, let's calculate the percentage return.The percentage return on the 1-year Treasury bill is approximately **2.08%** (rounded to two decimal places).

Would you like further details or have any questions? Here are some related questions you might find interesting:

1. How does the percentage return change if the purchase price is lower?
2. What is the annualized return for Treasury bills of different maturities?
3. How are Treasury bill returns different from Treasury bonds?
4. Can you explain the difference between nominal and real returns?
5. How does inflation affect the return on Treasury securities?

**Tip:** Treasury bills are often considered low-risk investments because they are backed by the U.S. government, making them a secure option for short-term investing.

Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000 if you pay $9,796.05 to purchase it and receive its full face value at maturity.

Learn how to calculate the percentage return on a 1-year Treasury bill with a face value of $10,000. The problem demonstrates how to apply the formula for percentage return using the purchase price of $9,796.05 and provides a step-by-step solution. Suitable for high school students in Grades 10-12.

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