What is the yield of a 91-day Canadian T-bill with a par value of $1,000 that is quoted at 98.735?

Question

Quizplus · Accepted Answer

To calculate the yield on a T-bill, we need to use the following formula:

Yield = (Par Value - Purchase Price) / (Par Value) x (360 / Days to Maturity) x 100%

Plugging in the given values, we get:

Yield = (1,000 - (98.735% x 1,000)) / 1,000 x (360 / 91) x 100%
Yield = 5.14%

Therefore, the answer is B) 5.14%.

What Is the Yield of a 91-Day Canadian T-Bill with a Par