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You want to compare Treasury bills (T-bills) with coupon paying Treasury bonds with the same maturity. You notice the following quotes for the 4-week (29
You want to compare Treasury bills (T-bills) with coupon paying Treasury bonds with the same maturity. You notice the following quotes for the 4-week (29 day), 2-month (57 day), 3-month (87 day), 6-month (178 day), and 12-month (353 day) T-bills.
days | bid yield | ask yield |
29 | 0.353 | 0.293 |
57 | 0.700 | 0.629 |
87 | 0.846 | 0.823 |
178 | 1.414 | 1.396 |
353 | 2.082 | 2.058 |
Calculate the bond equivalent yield (ask) for the 353 day T-bills.
2.1296%
2.1402%
2.1319%
2.0971%
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