10A)

An investor buys a T-bill at a bank discount quote of 6.30 with 120 days to maturity for 9,790.00. The bill has a face value of $10,000. The investor's bond equivalent yield on this investment is _____.

• 6.44%

• 6.52%

• 7.02%

• 6.35%

10B) A T-bill with face value $10,000 and 90 days to maturity is selling at a bank discount ask yield of 3.7%. a. What is the price of the bill? b. What is its bond equivalent yield