Question

The current T-Bill that is 225 days from maturity is selling for $98,850. The T. Bill...

The current T-Bill that is 225 days from maturity is selling for $98,850. The T. Bill has a face value of $100,000

1. Calculate the Discount Yield on the T-Bill.

2. Calculate the Bond Equivalent Yield on the T-Bill

3. Calculate the EAR on the T-Bill

In the above problem all else remaining the same, what would be the Bond Equivalent Yield on the T-Bill if the maturity is 300 days?

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