Bond Equivalent Yield - Example 1
Channel: Jonathan Kalodimos, PhD
Date: 2017-02-26

Example: Suppose that a T-bill has a face value of $100 and will be paid in 90 days.  If the interest rate, quoted as on a discount basis, is 5 percent, what is the bond equivalent yield of the T-bill?

--------------------------------------------------------------------------------
General Recommendations for Finance Reading
--------------------------------------------------------------------------------
Fundamentals of Investments: http://amzn.to/2r9gCXC
The Intelligent Investor: http://amzn.to/2sGY6rt
A Random Walk Down Wall Street: http://amzn.to/2r9qX5N