Suppose you purchase a T bill that is 125 days from maturity for $ 9,765 The T bill has a face value of $ 10,000 a Calculate the T bills quoted discount yield b Calculate the T bills bond equivalent yield ...

a The Tbills quoted yield is calculate ...

Suppose you purchase a T-bill that is 125 days from maturity for $ 9,765. The T-bill has

Question:

Suppose you purchase a T-bill that is 125 days from for $ 9,765. The T-bill has a of $ 10,000.
a. Calculate the T-bill’s quoted discount yield.
b. Calculate the T-bill’s bond equivalent yield.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...