# Question

Suppose you purchase a T-bill that is 125 days from maturity for $ 9,765. 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.

a. Calculate the T-bill’s quoted discount yield.

b. Calculate the T-bill’s bond equivalent yield.

## Answer to relevant Questions

Refer to Table 5–5. a. Calculate the ask price of the T-bill maturing on October 3, 2013, as of June 21, 2013. b. Calculate the bid price of the T-bill maturing on December 19, 2013, as of June 21, 2013.You can purchase a T-bill that is 95 days from maturity for $ 9,965. The T-bill has a face value of $ 10,000. a. Calculate the T-bill’s quoted yield.b. Calculate the T-bill’s bond equivalent yield. c. Calculate the ...What is a STRIP? Who would invest in a STRIP? What is the difference between term bonds and serial bonds?What are sovereign bonds?Post your question

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