Suppose a 6-month Treasury bill is priced with a yield on a bank discount basis of 3.31%.

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Suppose a 6-month Treasury bill is priced with a yield on a bank discount basis of 3.31%. The bill will mature in 181 days.

a. Assume the face value is $1,000, what is the bill’s dollar price?

b. What is the CD-equivalent yield?

c. What is the Treasury bill’s bond equivalent yield?

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Introduction To Fixed Income Analytics

ISBN: 9780470572139

2nd Edition

Authors: Steven V. Mann, Frank J. Fabozzi

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Question Posted: Apr 29, 2024 04:00 AM

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Suppose a 6-month Treasury bill is priced with a yield on a bank discount basis of 3.31%.

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Introduction To Fixed Income Analytics

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