A security dealer is offering a $10,000 T-bill with 90 days to maturity at a bank discount rate of 0.40%. Calculate its equivalent annual yield (rEAY). Round your ansswer to the nearest 1/10000 of a percent (4 digits to the right of the decimal point). Note that I have provided the percent sign. DO NOT type in another one. Therefore, if (hypothetically) the answer were 6.2567% you would need to type 6.2567--not 0.062567, and not 6.2567%

Answer rating: 100% (QA)

The first step is to calculate the discount on the Tbill Discount ... View the full answer