Question: Use the information in the following table. A face value of $10000 is assumed for these Treasury bills. Maturity Days to Maturity Bank Discount Mar

Use the information in the following table. A face value of $10000 is assumed for these Treasury bills.

Maturity Days to Maturity Bank Discount Mar 30 28 1.20 Apr 30 59 2.00 Jun 30 120 2.45 Aug 30 181

Determine the bank discount rate of the August 30 Treasury bill if it currently selling for $9841.63. What is the bond equivalent yield?

a. What is the bank discount rate of the August 30 Treasury bill?

b. What is the bond equivalent yield (BEY) of the August 30 Treasury bill?

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