INV 1 1c iii. A 180-day US T-bill is quoted with bid and ask bank discount yields of 6.25% and 6.00% respectively. c. Find the effective annual yield based on iii. the ask price of the T-bill.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
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INV 1 1c iii.

  1. A 180-day US T-bill is quoted with bid and ask bank discount yields of 6.25% and 6.00% respectively.

c. Find the effective annual yield based on

iii. the ask price of the T-bill.

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