Question: A U . S . Treasury bill with 9 0 - day maturity sells at a bank discount yield of 3 % . a .

A U.S. Treasury bill with 90-day maturity sells at a bank discount yield of 3%.
a. What is the price of the bill? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit $ sign in your response.)
Price of the bill $
992.5
b. What is the 90-day holding period return of the bill? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Holding period return of the bill
%
c. What is the bond equivalent yield of the bill? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Bond equivalent yield of the bill
%
d. What is the effective annual yield of the bill? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Effective annual yield of the bill

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!