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If a six-month Treasury bill is purchased for $0.9675 on a dollar (i.e., $96,750 for a $100,000 bill), what is the discount yield, the annual

If a six-month Treasury bill is purchased for $0.9675 on a dollar (i.e., $96,750 for a $100,000 bill), what is the discount yield, the annual rate of interest, the compound rate? What are the yields if the price falls to $0.94 on a dollar? Show all work.

a. Discount Yield =

b. Annual Rate =

c. Annual Compound Rate =

d. Discount Yield @ 0.94 =

e. Annual Yield @ 0.94 =

f. Compound @ 0.94 =

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