Question: U.S. Treasury bills are available for purchase this week at the following prices (based upon $100 par value) and with the indicated maturities: a. $97.25,

U.S. Treasury bills are available for purchase this week at the following prices (based upon $100 par value) and with the indicated maturities:
a. $97.25, 182 days.
b. $95.75, 270 days.
c. $98.75, 91 days.

Calculate the bank discount rate (DR) on each bill if it is held to maturity. What is the equivalent yield to maturity (sometimes called the bond-equivalent or coupon-equivalent yield) on each of these Treasury Bills?

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