Suppose you buy a 120-day T-bill with a face value of $10,000 at price of $9,900. Your investment return yield (IRY)would be

Name: Suppose you buy a 120-day T-bill with a face value of $10,000 at price of $9,900. Your investment return yield (IRY)would be
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The investment return yield (IRY) is calculated as [(Face Value - Purchase Price) / Purchase Price] * (360 / Days to Maturity). For this T-bill: [(10,000 - 9,900) / 9,900] * (360 / 120) = 3.0%.

Suppose You Buy a 120-Day T-Bill with a Face Value