Friday
August 1, 2014

Homework Help: Mathematics

Posted by Joy on Friday, August 23, 2013 at 6:36pm.

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?

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