Question

A Treasury bill that settles on May 18, 2019, pays $100,000 on August 21, 2019. Assuming...

A Treasury bill that settles on May 18, 2019, pays $100,000 on August 21, 2019. Assuming a discount rate of 3.87 percent, what are the price and bond equivalent yield? Use Excel to answer this question. (Round your price answer to 2 decimal places. Enter your yield answer as a percent rounded to 3 decimal places.)

Price 0
Bond equivalent yield 0 %
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Answer #1

Hi,

below is the excel formula and values to answer the question:

Below are the values:

Settlement Date 5/18/2019
maturity Date 8/21/2019
Discount Rate 3.87%
a) Price          98.98
b) bond equivalent yield 3.964%

Thanks

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