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A T-bill that is 180 days from maturity with a face value of $100,000 is selling...

A T-bill that is 180 days from maturity with a face value of $100,000 is selling for $98,850.

(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 150 days.

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Expert Solution

jeff jeffy answered 8 months ago
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