For this problem assume that a $1000 face value treasury bill coming to maturity in exactly one year is currently traded at 95.5. Choose the correct option. (In computational problems, show the basic equation(s) you used to solve the problem. In verbal problems, briefly explain your choice and why you dismissed the other answers. (In computational problems, show the basic equation(s) you used to solve the problem. In verbal problems, briefly explain your choice and why you dismissed the other answers. )

1. The nominal YTM is 4.5%
2. The real YTM is 4.5%
3. The nominal YTM is about 4.7%
4. The real YTM is about 4.7%
5. None of the above