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8. An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The investors bond equivalent yield
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Answer is B 4.97%
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Statement showing Computations
Particulars
Proceeds = 10,000 - 10,000*4.8%*150/360
Proceeds = 10,000 - 200
Proceeds = 9,800
Bond Equivalent Yield = (200/9800) *(365/150)
Bond Equivalent Yield = 4.97%
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