if a $10,000 par t bill has a discount quote and a 180-day maturity, what is the market price of the instrument

$9,787.50

Explanation:

Assuming that discount rate = 4.25%

Discount rate quote =4.25%

Par value = $10,000  

Maturity = 180 days

Discount yield = (Par value - Price)/Par value * 360/ Days to maturity

0.0425=($10,000-Price)/$10,000 *360/180

0.0425=($10,000-Price)0.0002

0.0425 = $2 - 0.0002*PRICE

0.0002Price = $2 - 0.0425

0.0002Price = $1.9575

Price = 1.9575/0.0002

Price = $9,787.50

Hence, the market price of the instrument is $9,787.50