What is the discount yield, bond equivalent yield, and effective annual return on a $1 million treasury bill that currently sells at 93.375 percent of its face value and is 65 days from maturity?

Discount yield :

IT – bill, dry = (($ 1 million - $ 973,750) / $ 1 million) (360 / 65) = 14.538%

Bond equivalent yield : IT – bill, bey = (($ 1 million - $ 973,750) / $973,750) (365 / 65) = 15.138%

 

EAR:

EAR = (1 + 0.15138 / (365 / 65)) 365 / 65 – 1 = 16.111%

Areceive reimbursement for your college visit costs b schedule a tour of the college campus c attend a college class to see what it’s like d both b & c e all of the above

Ithink its 3! hope it : -)