You purchase a three-month discount security (e.g.,a Treasury bill or commercial paper)for $0.9878 on $1 (i.e.,$98,780 for $100,000 face amount).What is the discount yield and the annual yield earned by the investment?

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The Answer of You purchase a three-month discount security (e.g.,a Treasury bill or commercial paper)for $0.9878 on $1 (i.e.,$98,780 for $100,000 face amount).What is the discount yield and the annual yield earned by the investment?

You Purchase a Three-Month Discount Security (E