What is the price of the bill? (Use 360 days a year. Do not round aces.) Price of the bill What is its bond equivalent yield? (Use 365 days a year. Do not r aces.) ond equivalent yield %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A T-bill with face value $10,000 and 88 days to maturity is selling at a bank discount ask yield of 3.5%.
Required:
a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Price of the bill
b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Bond equivalent yield
%
Transcribed Image Text:A T-bill with face value $10,000 and 88 days to maturity is selling at a bank discount ask yield of 3.5%. Required: a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bill b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Bond equivalent yield %
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