Mathematics
posted by Joy .
A Tbill 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. P = Po + Po*(r/360)*t = $10,000
Po + Po*(0.043/360)*96 = 10,000
Po + 0.01146667Po = 10000
1.01146667Po = 10000
Po = $9886.63. = Amt. paid.
B. %Yield=((100009886.63)/9886.63
*365/96 = 4.36