Briefly discuss the differences between these measures of


You just picked up the Wall Street Journal and noticed that at a recent Treasury auction of 91 day T-bills, the lowest price bid for the $10,000 bills was 97.228% of par. a) What is the discount yield on these securities? b) What is the coupon-equivalent yield on the T-bills? c) What is the annual effective yield on the T-bills? d) Briefly discuss the differences between these measures of yield?

 

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Financial Management: Briefly discuss the differences between these measures of
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