What is the yield-to-maturity for a $5,000 Treasury Bill (a type of Discount Bond) for which...

Question

Question

What is the yield-to-maturity for a $5,000 Treasury Bill (a type of Discount Bond) for which you paid $4,875.00?

Answer 1

Answer #1

Yield to Maturity = (5,000 - 4,875)/4,875

Yield to Maturity = 125/4,875

Yield to Maturity =2.56%

Answer 2

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