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You just picked up the Wall Street Journal and noticed that at a recent Treasury auction of 180 day T-bills with a face value
You just picked up the Wall Street Journal and noticed that at a recent Treasury auction of 180 day T-bills with a face value of $10,000, the lowest price bid for the bills was 98.561% of par value. a) What is the discount yield on the T-bills? b) What is the money market yield on these securities? c) What is the bond-equivalent yield on the T-bills? d) What is the annual effective yield on the T-bills? e) Briefly discuss the differences between these different measures of yield?
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Answer Absolutely lets analyze the different yield measures for the 180day Tbills with a face value of 10000 and a purchase price of 98561 of par valu...Get Instant Access to Expert-Tailored Solutions
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