1) A T-bill that is 200 days from maturity is selling for $95,860. The T-bill has a face value of $100,000.
a) Calculate the discount yield, bond equivalent yield, and EAR on the T-bill
Discount Yield____
Bond Equivalent Yield____
EAR_____
b) Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 275 days
Discount Yield____
Bond Equivalent Yield_____
EAR_______