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 Summary
The price of the bill as a percentage of face value is determined. The bond equivalent yield is determined.
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The yield rate is 4.24%
which means that (FV-PV)/PV = 4.24%
or FV/PV - 1 = ...
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