Question: The discount yield on a T-bill differs from the T-bill's bond equivalent yield (BEY) because: 1. the discount yield is the return per dollar of

 The discount yield on a T-bill differs from the T-bill's bond

The discount yield on a T-bill differs from the T-bill's bond equivalent yield (BEY) because: 1. 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 a. I only b. II only c. I and 11 only d. II and III only (4. 1

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