Grab Bag \( \begin{array}{l}\text { A } \$ 10,000 \text { T-bill maturing in } 83 \text { days was sold for } \$ 10,087,22 \text {. Find } \\ \text { the simple discount and equivalent simple interest rates. }\end{array} \) Numeric 1 point What is the simple discount rate (to two decimals)

To find the simple discount rate, you can use the formula: \[ \text{Simple Discount Rate} = \frac{\text{Face Value} - \text{Purchase Price}}{\text{Face Value}} \times \frac{365}{\text{Days to Maturity}} \] Putting the numbers in: \[ \text{Simple Discount Rate} = \frac{10,000 - 10,087.22}{10,000} \times \frac{365}{83} \] Calculating the discount: \[ 10,000 - 10,087.22 = -87.22 \] Now calculate: \[ \text{Simple Discount Rate} = \frac{-87.22}{10,000} \times \frac{365}{83} \approx -0.001491 \times 4.405 = -0.00657 \text{ or } -0.657\% \] The simple discount rate is about **-0.66%** (rounded to two decimals, ignoring the negative sign since it signifies a loss rather than a discount). This solution would require adjustment to the calculations, especially since a T-bill typically should be purchased at a discount relative to its face value. Always double-check signs and interpretations during financial calculations!