Calculate the treasury bill''s holding period yield

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A U.S. Treasury bill with a face value of $100,000 and 120 days until maturity is selling for $98,500.

(1) Calculate the Treasury bill's holding period yield and effective annual yield.

(2) Calculate the Treasury bill's bank discount yield. Is bank discount yield a meaningful measure of return? 

(3) Calculate the Treasury bill's money market yield.

Reference no: EM132234882

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