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A T-bill that is 275 days from maturity is selling for $96,010. The T-bill has a...

A T-bill that is 275 days from maturity is selling for $96,010. The T-bill has a face value of $100,000.

a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill.
b. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 350 days.
  

Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))
Discount yield %
Bond equivalent yield %
EAR %

  • Required B

Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 350 days. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

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Discount yield %
Bond equivalent yield %
EAR %

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Expert Solution

jeff jeffy answered 2 years ago
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