A zero coupon T-bill with 4-month expiration and $1000 par is currently selling at $974. What...

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A zero coupon T-bill with 4-month expiration and $1000 par is currently selling at $974. What...

A zero coupon T-bill with 4-month expiration and $1000 par is currently selling at $974. What is your annual percentage yield (i.e. APR using simple annualization, not compounded)? (Provide your answer in percent rounded to two digits, omitting the % sign.)

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Answer 1

Answer #1

Annual Percentage yield=(Par value-Price)/Price*12/number of months to expiration
=(1000-974)/974*12/4
=8.01%

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Answer 2

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