Money Mkts

ameyakukde
Good Student
Posts: 29
Joined: Thu Aug 02, 2012 11:55 am

Money Mkts

Postby ameyakukde » Tue Apr 09, 2013 12:39 am

A Treasury bill selling for $97,569 with 100 days to maturity and a face value of $100,000 should be quoted on a bank discount basis at:

Since T-Bills are quoted on an actual/365 basis, I believe one should use 365/100 for calculating bank yield rather than 360/100 factor, please correct me if I am wrong?
Also why is it called "bank discount basis"?

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