A Treasury bill that settles on July 17, 2008, pays $100,000 on August 21, 2008 Assuming a discount rate of 3 98 percent, what is the price and bond equivalent yield ...

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A Treasury bill that settles on July 17, 2008, pays $100,000 on August 21, 2008. Assuming a

Question:

A Treasury bill that settles on July 17, 2008, pays $100,000 on August 21, 2008. Assuming a of 3.98 percent, what is the price and 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...