EXAMPLE 5-2 Comparison of Discount Yield, Bond Equivalent Yield, and EAR Suppose you can purchase a $1 million Treasury bill that is currently selling on a discount basis (i.e., with no explicit interest payments) at 981/2 percent of its face value. The T-bill is 140 days from maturity (when the $1 million will be paid). Depending on the setting in which you are interested, any one of the following three yields or interest rates could be appropriate