A T-bill has a bank discount yield of 7.41% based on the ask price, and 7.90% based on the bid price. The maturity of the bill (already accounting for skip-day settlement) is 60 days.

Calculate its bond equivalent yield and effective annual yield on the basis of the ask price.

Confirm that these yields exceed the discount yield.

(Do not round intermediate calculations. Round your answers to 2 decimal places.)

1% Bond equivalent yield Effective annual yield Bond equivalent yield and Effective annual yield exceed the discount yield 1% (Click to select) v