Suppose you purchase a T-bill that is 101 days from maturity for $9,830. The T-bill has a
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Question:
Suppose you purchase a T-bill that is 101 days from maturity for $9,830. The T-bill has a face value of $10,000.
a.Calculate the T-bill's quoted discount yield.
b.Calculate the T-bill's bond equivalent yield.
(For all requirements, use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
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