A T-bill has a discount Ask quote of 4.80 with 150 days to maturity and sells for $9800. The bill has a face value of $10,000. What is its Ask yield

Question

asked Mar 6, 2022 221k views

1 Answer

Rahsha · Answer 1 · 2022-03-11T09:15:11+0000

Answer: 4.97%

Step-by-step explanation:

Yield = (Face value / Purchase price - 1) * 365 days / Days to maturity

= (10,000 / 9,800 - 1) * 365 / 150

= 0.0204081632653 * 365/150

= 4.97%