Question
A three-month t bill sold for a price of $99.311998 per $100 face value. What is the yield to maturity of this bond expressed as
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A three-month t bill sold for a price of $99.311998 per $100 face value. What is the yield to maturity of this bond expressed as an Effective Annual Rate (as opposed to the Nominal Rate Rate)? Remember, the bond matures in 3 months, meaning C/Y = 4. First compute nominal rate and then figure out effective rate. Ok to solve with Excel
a 2.5%
b 2.8%
c 3.2%
d 4.0%
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Sabotage The Business Of Finance
Authors: Ronen Palan
1st Edition
0141986247, 978-0141986241
