T-Bill Yield

a. Determine how the annualized yield of a T-bill would be affected if the purchase price were lower. Explain the logic of this relationship.

b. Determine how the annualized yield of a T-bill would be affected if the selling price were lower. Explain the logic of this relationship.

c. Determine how the annualized yield of a T-bill would be affected if the number of days were reduced, holding the purchase price and selling price constant. Explain the logic of this relationship.