1. You just inherited a US Treasury bill with a face value of $1,000,000, a price of $996,992.96 and with 72 days to maturity. Find:

a) The money market yield of the T-bill.

b) The bond equivalent yield of the T-bill.

c) The equivalent annual yield of the T-bill.

d) Explain how the three yields are different and why you need to know both the money market yield and the bond equivalent yield to make an investment decision.