Question: A Treasury bill that is 2 2 5 days from maturity is selling for $ 9 8 , 8 5 0 . The Treasury bill

A Treasury bill that is 225 days from maturity is selling for $98,850. The Treasury bill has a face value of $100,000.
Note: Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations.
Round your percentage answers to 3 decimal places. (e.g.,32.161)
a. Calculate the discount yield, bond equivalent yield, and EAR on the Treasury bill.
Discount Yield:
%
Bond Equivalent Yield (BEY):
%
Effective Annual Return (EAR):
%
b. Calculate the discount yield, bond equivalent yield, and EAR on the Treasury bill if it matures in 300 days.
Discount Yield:
%
Bond Equivalent Yield (BEY):
%
Effective Annual Return (EAR):
%

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