A Treasury bill with a par value of $100,000 due two months from now is selling today for $98,039 with an effective annual yield of

Name: A Treasury bill with a par value of $100,000 due two months from now is selling today for $98,039 with an effective annual yield of
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Question

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The effective annual yield can be calculated using the formula for annualizing the yield from the discount: [(Par Value - Purchase Price) / Purchase Price] * (365 / Days to Maturity). Here, the yield is approximately 12.62%.

A Treasury Bill with a Par Value of $100,000 Due