The coupon equivalent yield on a three-month Treasury bill that has a $1,000 face value and a purchase price of $985 is

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The coupon equivalent yield (CEY) for a Treasury bill can be calculated using the formula: CEY = [(Face Value - Purchase Price) / Purchase Price] * (365 / days to maturity) * 100. For this T-bill, CEY = [($1,000 - $985) / $985] * (365 / 90) * 100 = 6.1 percent.

The Coupon Equivalent Yield on a Three-Month Treasury Bill That