The discount yield on a T$-$bill differs from the T$-$bill's bond equivalent yield $($BEY$)$ because:

I. the discount yield is the return per dollar of face value and the BEY is a return per dollar originally invested.

II$.$ a $360-$day year is used on the discount yield and the BEY uses $365$ days.

III. the discount yield is calculated without compounding, and the BEY is calculated with compounding.

Multiple Choice

I and II only

II only

II and III only

Prevy

$2$ of $15$

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