If the discount rate on a T-bill with 91 days to maturity is quoted as 5%, we ca
ID: 2632001 • Letter: I
Question
If the discount rate on a T-bill with 91 days to maturity is quoted as 5%, we can infer that:
the bond equivalent yield on this bill is 5.45%.
the 91-day bond equivalent yield is 3.28%
the market price of the bond, per one hundred dollars of face value, is $98.74.
the actual 91-day discount yield on this bill is 2.69%.
none of the above
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the bond equivalent yield on this bill is 5.45%.
the 91-day bond equivalent yield is 3.28%
the market price of the bond, per one hundred dollars of face value, is $98.74.
the actual 91-day discount yield on this bill is 2.69%.
none of the above
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Explanation / Answer
the market price of the bond, per one hundred dollars of face value, is $98.74.
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