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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

SHOW WORK FOR BEST ANSWER

Explanation / Answer

the market price of the bond, per one hundred dollars of face value, is $98.74.

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