A Treasury bill with 113 days to maturity is quoted at 98.630. What are the bank discount yield, the bond equivalent yield, and the effective annual return

The bank discount yield is 4.36%

The bond equivalent yield is 4.49%

The effective annual return is 4.56%

Explanation:

In order to calculate the bank discount yield we would have to make the following calculation:

bank discount yield=(Face Value-Purchae price)/Face Value)*(360/days)

bank discount yield=($100-98.630)/$100)*360/113

bank discount yield=4.36%

The bank discount yield is 4.36%

In order to calculate the bond equivalent yield we would have to make the following calculation:

the bond equivalent yield=(Face Value-Purchase price)/Purchase price)*(365/days)

the bond equivalent yield=($100-98.630)/$98.630)*365/113

the bond equivalent yield=4.49%

The bond equivalent yield is 4.49%

In order to calculate the effective annual return we would have to make the following calculation:

effective annual return=1+(Face Value-Purchase price)/Purchase price)∧(365/days)-1

effective annual return=1+($100-98.630)/$98.630)∧365/113-1

effective annual return=4.56%

The effective annual return is 4.56%

answer: kevoto

explanation: be healthy

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.