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ash manager Ken Johnson just picked up the financial newspaper and is having trouble understanding the jargon. He notices that a recent Treasury auction of

ash manager Ken Johnson just picked up the financial newspaper and is having trouble understanding the jargon. He notices that a recent Treasury auction of 13-week Treasury bills, the lowest price bid for $10,000 bills was 97.569 percent of par.

Discount yield on securities?

coupon equivalent yield?

annual effective yield?

Comment on the relationship between the results you got in the problems a through c.

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