A three-month t bill sold for a price of $99.311998 per $100 face value. What is...

A three-month t bill sold for a price of $99.311998 per $100 face value. What is the yield to maturity of this bond expressed as an Effective Annual Rate (as opposed to the Nominal Rate Rate)? Remember, the bond matures in 3 months, meaning C/Y = 4. First compute nominal rate and then figure out effective rate. Ok to solve with Excel

a
2.5%

b
2.8%

c
3.2%

d
4.0%

Solutions

Expert Solution

answer : b : 2.8%

jeff jeffy answered 1 week ago

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Subjects

	a	2.5%
	b	2.8%
	c	3.2%
	d	4.0%