You would like to purchase a T- bill that has a $ 10,000 face value and 270

Question:

You would like to purchase a T- bill that has a $ 10,000 and 270 days to maturity. The current price of the T- bill is $ 9,860. What is the on this security? What is its bond equivalent yield?
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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...