Answer:
$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
