Calculate the discount yield bond equivalent yield and ear


What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 94 3/8 percent of its face value and is 70 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

Discount yield %

Bond equivalent yield %

Effective annual return %

A T-bill that is 280 days from maturity is selling for $96,020. The T-bill has a face value of $100,000. a. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Discount yield %

Bond equivalent yield %

EAR %

b. Calculate the discount yield, bond equivalent yield, and EAR on the T-bill if it matures in 355 days. (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 2 decimal places.(e.g., 32.16)) Discount yield % Bond equivalent yield % EAR %.

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Financial Management: Calculate the discount yield bond equivalent yield and ear
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