You purchase a three-month discount security (e.g., a Treasury bill or commercial paper)for $0.9878 on $1 (i.e., $98,780 for $100,000 face amount). What are the discount yield, the simple annual yield, and the annual compound yield earned by the investment? Assume a 360-day year.

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The Answer of You purchase a three-month discount security (e.g., a Treasury bill or commercial paper)for $0.9878 on $1 (i.e., $98,780 for $100,000 face amount). What are the discount yield, the simple annual yield, and the annual compound yield earned by the investment? Assume a 360-day year.

You Purchase a Three-Month Discount Security (E