Question: 2. What is the difference between a discount yield and a bond equivalent yield? Which yield is used for Treasury bill quotes? 11. What is

2. What is the difference between a discount yield and a bond equivalent yield? Which yield is used for Treasury bill quotes?

11. What is the difference between a repurchase agreement and a reverse repurchase agreement?

18. Who are the major issuers of and investors in money market securities?

7. 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.

  1. Calculate the T-bills quoted yield.

  2. Calculate the T-bills bond equivalent yield.

  3. Calculate the T-bills EAR.

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