A T bill that is 225 days from maturity is selling
A T-bill that is 225 days from maturity is selling for $ 95,850. The T-bill has a face value of $ 100,000.
a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill.
b. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 300 days.

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