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CTFA · Question #112

According to the Bond Equivalent Yield (BEY) method, the yield on a $1,000, 13-week US Treasury bill purchased for $960 would be closest to .

The correct answer is B. 16.7 Percent. See the full explanation below for the reasoning.

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Question

According to the Bond Equivalent Yield (BEY) method, the yield on a $1,000, 13-week US Treasury bill purchased for $960 would be closest to .

Options

  • A16 Percent
  • B16.7 Percent
  • C17 Percent
  • D17.8 Percent

How the community answered

(32 responses)
  • A
    9% (3)
  • B
    84% (27)
  • C
    3% (1)
  • D
    3% (1)

Topics

#Treasury bills#bond equivalent yield#yield calculation#discount securities

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