Solution-Bid and ask bank discount yields of the t-bill

Bid and ask bank discount yields of the t-bill

Reference no: EM132466221

The bid and ask bond equivalent yields of a U.S. T-bill are 7.8% and 7.6% respectively. The maturity of the T-bill is 120 days.

1. Calculate the bid and ask bank discount yields of the T-bill.

2. Find the bid-ask spread of the T-bill.

3. Find the effective annual yield based on

a. the bid price of the T-bill.

The ask price of the T-bill.

Reference no: EM132466221

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Bid and ask bank discount yields of the t-bill

Reference no: EM132466221

Reference no: EM132466221

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