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    A Treasury bill purchased in December 2007 has 34 days until maturity and a bank yield of 4.24 percent. What is the price of the bill as a percentage of face value?

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    Treasury Bills A Treasury bill purchased in December 2007 has 34 days until maturity and a bank yield of 4.24 percent. What is the price of the bill as a percentage of face value? What is the bond equivalent yield?

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    Solution Preview

    The yield rate is 4.24%
    which means that (FV-PV)/PV = 4.24%
    or FV/PV - 1 = ...

    Solution Summary

    The price of the bill as a percentage of face value is determined. The bond equivalent yield is determined.

    $2.19

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