Problem 9-8 A U.S. Treasury bill with 60 days to maturity is quoted at a discoun

Question

Problem 9-8

A U.S. Treasury bill with 60 days to maturity is quoted at a discount yield of 1.45 percent. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

A U.S. Treasury bill with 60 days to maturity is quoted at a discount yield of 1.45 percent. What is the bond equivalent yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

Bond equivalent yield = Yiled * 365 / period

= 1.45% * 365 / 60

= 8.82%

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