Question: The discount yield on a T - bil differs from the T - bil's bond equivalent yield ( BEY ) because: the diecount yleld is
The discount yield on a Tbil differs from the Tbil's bond equivalent yield BEY because:
the diecount yleld is the refurn per dollar of face watat and the BEY is a return per dollar originally invested.
II a day year is used on the discount yleld and the BEY uses doys.
il the diycount yield is calculated without compounding, and the BEY is calculated with compounding.
Matiple Choice
Ionly
ony
land omy
I and le enly
LR and I
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