A six-month $10,000 Treasury bill selling for $9,844. What isthe : 148568
A six-month $10,000 Treasury bill is selling for $9,844. What isthe annual yield according to the discount method? Does this yieldunderstate or overstate the true annual yield?Explain.
The answer in the back of the book is:
3.12% discount yield
3.19% annualized yield
How did they come up with this? Do not copy the other chegg answer,parts of it were wrong and make it so I can easily copy and pastethe content!