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Joystar1977
Active member
- Jul 24, 2013
- 119
A T-bill with face value of \$10,000 and 96 days to maturity is selling at a bank discount ask yield of 4.3%. A. What is the price of the bill? (use 360 days a year) B. what is its bond equivalent yield?
A. .043 * (96/360) = .011 .011 * (1-.043) = \$9,890
B. 1.1% * (365/96) = 4.182%.
Are these answers correct?
A. .043 * (96/360) = .011 .011 * (1-.043) = \$9,890
B. 1.1% * (365/96) = 4.182%.
Are these answers correct?