Question
Hello, could you give me an answer for the following question? Thanks. A U.S. Treasury bill with a face value of $100,000 and 120 days
Hello, could you give me an answer for the following question? Thanks.
A U.S. Treasury bill with a face value of $100,000 and 120 days until maturity is selling for $98,500.
(1) Calculate the Treasury bill's holding period yield and effective annual yield.
(2) Calculate the Treasury bill's bank discount yield. Is bank discount yield a meaningful measure of return?
(3) Calculate the Treasury bill's money market yield.
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
