A U.S. Treasury bill with 64 days to maturity is quoted at a discount yield of 1.75 percent. Assume a $1 million face value. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)

Face Value of Treasury Bill = $1,000,000
Discount Yield = 1.75%
Calculating the Price of Treasury Bill:
Price = Face value*[1 (% of Yield)*Number of days/360]
Price = $1,000,000*[1(0.0175*64/360)]
Price = $1,000,000*0.9968888889
Price of TBill = $996,888.89
 Bond Equivalent Yield = [(Face value  Price)/Face Value]*365/Number of days
Bond Equivalent Yield =[($1,000,000  $996,888.89)/$1,000,000]*365/64
Bond Equivalent Yield = 1.774%
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