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A person purchased a 90-day maturity, $100,000 par value Treasury bill for $98,000. a. Calculate the annualized bank discount yield paid by the treasury bill.

A person purchased a 90-day maturity, $100,000 par value Treasury bill for $98,000.

a. Calculate the annualized bank discount yield paid by the treasury bill.

b. If you sell the bill for $99,000 after one month, what is your holding period yield?

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