In: Finance
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)) PART A
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)) PART
B