Can someone explain the difference in the two set of questions? One uses the ask price and the other uses the ask yield and I'm not too sure why? Question 5 uses 365 days while question 17 uses 360 days. I don't know if I'm reading the question wrong but I dont see a difference in the two so I don't understand why different numbers are used.

4. Consider the following quote for a U.S. Treasury bill: N Bid Ask Ask Yield 72 2.53 2.52 2.57 What is the price? 106 a. 99.496000 100.0252 = 100-px360) 99.275000 196 97.480000 95.254300 (300 2.52 = 100-px (253 87.225000 . 504 = 100-P p=99.496 5. What is the yield computed on a bond-equivalent basis? a. 2.55% b. 2.56% c. 2.57% d. 2.58% e. 2.59% 100-P & (365/12) -504 . -02568 ? 2.571 Consider the following quote on an 86-day Tbill for the next two questions: N Bid Ask Ask Yield 86 3.48 3.47 (3.55) 16. Compute the price of this Tbill as a percentage of par a. 96.530000 1 .355 = 100-P (36/) b. 99.151944 106 al suo), SS 10O-P* (34) Bola c. 99.163562 d. 99.171056- .8481-100-P e. 99.182411 P=94.1519 17. Compute the bond-equivalent yield (to the nearest basis point) a. 3.47% 100-P (300/80) b. 3.53% c. 3.54% d. 3.55% .8481 360) = .0358 e. 3.56% 3.55%. 99.1 sia