A U.S. Treasury bill with 75 days to maturity is quoted at a discount yield of 1.25 percent. What is the bond equivalent yield?

Suppose you purchase a $1,000 TIPS on January 1, 2013. The bond carries a fixed coupon of 2 percent. Over the first two years, semiannual inflation is 1 percent, 2 percent, 2 percent, and 3 percent, respectively. For each six-month period, calculate the accrued principal and coupon payment

Accrued Principal Coupon Payment

First Six Months ? ?

Second 6 months ? ?

Third 6 months ? ?

Four 6 months ? ?

A Treasury bill with 119 days to maturity is quoted at 97.630. What is the bank discount yield, the bond equivalent yield, and the effective annual return?

Discount yield	%
Bond equivalent yield	%
Effective annual return