On June 23, 2011, the U.S. Treasury issued three T-Bills, and they had issued a 1-year T-Bill

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On June 23, 2011, the U.S. Treasury issued three T-Bills, and they had issued a 1-year T-Bill on June 2, 2011:

On June 23, 2011, the U.S. Treasury issued three T-Bills,

a. Calculate the bank discount rate for each security using the formulas given in the chapter and using the DISC function.
b. Calculate the bond equivalent yield for each security using the formulas given in the chapter and using the YIELDDISC function.
c. Go to www.treasurydirect.gov/RI/OFBills and find the results of the most recent T-Bill auction. Repeat parts a and b.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Financial Analysis with Microsoft Excel

ISBN: 978-1111826246

6th edition

Authors: Timothy R. Mayes, Todd M. Shank

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