Problem 9-12 Treasury Bills (LO1, CFA2)

A Treasury bill purchased in December 2020 has 75 days until maturity and a bank discount yield of 2.07 percent. Assume a $100 face value.

a. What is the price of the bill as a percentage of face value? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Price

% of face value

b. What is the bond equivalent yield? (Use 366 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)

Bond equivalent yield

%