What is the bond equivalent yield on a Treasury bill with 21 days to maturity and a bank discount yield of 3.47 percent?
A) 3.28%
B) 3.53%
C) 3.22%
D) 3.31%
E) 3.26%

Question

Quizplus · Accepted Answer

The bond equivalent yield (BEY) for a Treasury bill can be calculated using the bank discount yield (BDY) with the formula: BEY = (365/360) * (BDY / (1 - (BDY * (days to maturity/360)))). Plugging in the given values: BEY = (365/360) * (0.0347 / (1 - (0.0347 * (21/360)))) = approximately 3.53%.

What Is the Bond Equivalent Yield on a Treasury Bill