Suppose that you purchase the T-bill maturing on September 15, 2016, for $9.991.362. T-bill matures 122 days after the settlement date, May 17, 2016, and has a face value $10,000. The T-bill's asked discount yield is reported as: er a one-year period. It is the rate used to calculate the PV of an investment. be -X Compare discount securities to bonds with bond equivalent ields (ibe). (P;-P) 365 P . Convert bond equivalent yields into effective annual returns (EAR) to incorporate the impact of compounding interest over time. n EAR = 1+ 365 - 1 n