A T-bill that is 225 days from maturity is selling for $ 95,850. The T-bill has a

Question:

A T-bill that is 225 days from is selling for $ 95,850. The T-bill has a of $ 100,000.
a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill.
b. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 300 days.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...