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A Treasury bill with 90-day maturity sells at a bank discount yield of 3%. Assume the par value is 10,000. (a) What is the price
A Treasury bill with 90-day maturity sells at a bank discount yield of 3%. Assume the par value is 10,000.
(a) What is the price of the bill?
(b) What is the 90-day holding period return of the bill?
(c) What is the bond equivalent yield of the bill?
(d) What is the effective annual yield of the bill?
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