What is the bond equivalent yield on a 30-day Treasury bill that has a bank discount yield of 2.01 percent?
A)1.97 percent
B)1.99 percent
C)2.02 percent
D)2.04 percent
E)2.07 percent

Question

Quizplus · Accepted Answer

The bond equivalent yield (BEY) can be calculated using the formula: BEY = (Discount Yield * 365) / (360 - (Discount Yield * Days to Maturity)). Plugging in the values: BEY = (0.0201 * 365) / (360 - (0.0201 * 30)) = 2.04 percent.

What Is the Bond Equivalent Yield on a 30-Day Treasury