A Treasury bill that settles on May 18, 2019, pays $100,000 on August 21, 2019. Assuming a discount rate of 3.48 percent, what are the price and bond equivalent yield? Use Excel to answer this question.

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.