The bank discount rate (ask) on a 71-day T-bill is 4.86%. What is the bond equivalent yield on the T-bill?

Name: The bank discount rate (ask) on a 71-day T-bill is 4.86%. What is the bond equivalent yield on the T-bill?
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The bond equivalent yield (BEY) can be calculated using the formula: BEY = (Discount Rate * 365) / (360 - (Discount Rate * Days to Maturity)). Plugging in the values: BEY = (0.0486 * 365) / (360 - (0.0486 * 71)) = 0.0498 or 4.98%.

The Bank Discount Rate (Ask) on a 71-Day T-Bill Is