If the 180 days T-bill have the maturity of one year with the value of $9250 and face value is $10000 then reported discount yield is __________?
Correct answer: D. 0.15
- A. 0.2
- B. 0.13
- C. 0.14
- D. 0.15
Explanation
The discount is $750, or 7.5% of the $10,000 face value. Annualising this 180-day discount yield gives 0.075 × 360/180 = 0.15, so the reported yield is 15%.
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