Question

Only find the annualized yield for the 6-month Treasury bill.

The other answers are all correct.

Homework: 4-1 MyLab Homework Save Score: 3 of 4 pts 4 of 8 (8 complete) HW Score: 67.97%, 21.75 of 32 pt & Problem 8-1 (algorithmic) Question Help U.S. Treasury Bill Auction Rates - March 2009. The interest yields on U.S. Treasury securities in early 2009 fell to very low levels as a result of the combined events surrounding the global financial crisis. Calculate the simple and annualized yields for the 3-month and 6-month Tresury bills auctioned on March 9, 2009, Ested here 3-month T-Bill 6-month T-Bill Treasury bill, face value $ 10.000.00 Price at sale Discount $ 9,993.83 $ 6.17 $10,000 00 $ 9,976 86 s 23 14 The simple yield for the 3-month Treasury bills is 10617 % (Round to four decimal places ) The simple yield for the 6-month Treasury bills is 2319 % (Round to four decimal places ) The annualized yield for the 3-month Treasury bills is 0.2468 % (Round to four decimal places ) The annualized yield for the 6-month Treasury billsis Round to four decimal places) Enter your answer in the answer box and then click Check Answer All parts showing Clear All Check Answer

Answer 1

Face value of t-bill = $10,000
Price of sale = $9,976.86
Discount or interest on T-bill = $23.14
Annualized yield on t-bill formula = (Face value - issue price)/ issue price × 12/no. Of months × 100
(10000 - 9976.86)/9976.86 * 12/6 * 100
= 0.463873%
So, annualized yield on 6-month t-bill is 0.4639%