Question
A 182-day Canadian T-bill for 100 has a quoted price of 94.771 and a quoted yield rate of 11.07%. Show that any price from 94.767
A 182-day Canadian T-bill for 100 has a quoted price of 94.771 and a quoted yield rate of 11.07%. Show that any price from 94.767 to 94.771 inclusive has a corresponding yield rate of 11.07%. This shows that the yield rate quote to 0.01% is not as accurate a measure for the T-bill as is the price to the 10ths of a cent.
so what I tried is using the equation you = (F-P)/P * (365/days of t-bill) and I solved for P to get 94.7689 which kinda shows that 11.07% yield gives multiple results but I'm just hoping there's a more time efficient way of doing this question
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