A Treasury bill has 53 days to maturity and a bank discount yield of 2.88 percent. What is the bond equivalent yield? Calculate your answer as a percent to 3 decimal places, do not include the % sign.

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A: Maturity period = 109 daysA treasury bill quoted at 97.630Face value = $100

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A:

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Q: What is the YTM of the bond given the information below. The bond makes annual interest payments.…

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Q: If Treasury bills are currently paying 6.35 percent and the inflation rate is 1.6 percent, what is…

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.