Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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II. Show your solution
1. For each of the following Treasury Bills, calculate the discount basis yield
and the investment yield:
Investment
T-Bill
Maturity
Price per $100
Discount Yield
Yield
A
128-day
97.9323
В
91-day
98.7312
C
28-day
96.8931
D
182-day
99.1236
E
91-day
95.7821
2. Suppose the discount yield on a 128-day T-bill is 5%. What is its discount-
basis yield?
3. Suppose the investment yield on a 91-day T-bill is 3%. What is its discount-
basis yield?
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Transcribed Image Text:II. Show your solution 1. For each of the following Treasury Bills, calculate the discount basis yield and the investment yield: Investment T-Bill Maturity Price per $100 Discount Yield Yield A 128-day 97.9323 В 91-day 98.7312 C 28-day 96.8931 D 182-day 99.1236 E 91-day 95.7821 2. Suppose the discount yield on a 128-day T-bill is 5%. What is its discount- basis yield? 3. Suppose the investment yield on a 91-day T-bill is 3%. What is its discount- basis yield?
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