Where: D = dollar discount from face value, F = face value,
T = days until maturity, 360 = days in a year
118.75 / 10,000 * 360/91
= 0.01188 * 3.95604
= 0.04698, or 4.698%
yrs
On January 18, 2007, business week reported yields on treasury bills. Bruce martin purchased a 10,000 13-week treasury bill at 9,881.25.
(A)What was the amount of interest (which i know is 118.75)
(B)What was the effective rate of the interest?
Can someone tell me HOW you figure out B?
