A Treasury bill has a face value of $100,000, a price of $99,797.12, and matures in 35 days. What is the bond equivalent asked yield?
A)1.98%
B)2.12%
C)2.28%
D)3.67%
E)3.74%

Question

Quizplus · Accepted Answer

The bond equivalent yield (BEY) for a Treasury bill can be calculated using the formula: BEY = [(Face Value - Price) / Price] * (365 / Days to Maturity) * 100. Plugging in the given values: BEY = [($100,000 - $99,797.12) / $99,797.12] * (365 / 35) * 100 = 2.12%.

A Treasury Bill Has a Face Value of $100,000, a Price