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Problem 5-6 (LG 5-2) Suppose you purchase a Treasury bill that is 125 days from maturity for $9,765. The Treasury bill has a face value
Problem 5-6 (LG 5-2) Suppose you purchase a Treasury bill that is 125 days from maturity for $9,765. The Treasury bill has a face value of $10,000. a. Calculate the Treasury bill's quoted discount yield. b. Calculate the Treasury bill's bond equivalent yield. (For all requirements, use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161)) a. % Treasury bill's quoted discount yield Treasury bills bond equivalent yield b. %
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