You are a corporate treasurer and have excess funds that you will not need until summer. You are thinking of parking it in Treasury Bills until then. The T-bill issue in which you are interested has face value of $1,000 , has 180 days left to maturityand is currently selling for $993,000. Which of the following statements are correct?

1. If you ask your broker "what is the yield on this T-bill?" he should tell you a discount yield equal to 1.40%.

II. If you purchase this T-bill today and hold it until its maturity 180 days from nowyou will receive $993.000 in 180 days from now.

III. The appropriate T-Bill yield to compare the expected yield on a longer term corporate bond to the expected yield on the T-bill investment would be bond equivalent yield (BEY) equal to 1.43%.

I only

II only

I and III only

I, II AND III ONLY

ONLY I AND II