A Treasury bill with a face value of $100,000 and 120 days until maturity is selling for

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A Treasury bill with a face value of $100,000 and 120 days until maturity is selling for $98,500.
A. What is the T-bill's bank discount yield?
B. What is the T-bill's money market yield?
C. What is the T-bill's effective annual yield?
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...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Quantitative Investment Analysis

ISBN: 978-1119104223

3rd edition

Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle

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