A Treasury Bill Is Quoted at a Bank Discount Yield

question 63

Multiple Choice

A Treasury bill is quoted at a bank discount yield of 1.08 percent and has 12 days to maturity. What is the bond equivalent yield given that this is a leap year?

• A) 1.06 percent
• B) 1.08 percent
• C) 1.10 percent
• D) 1.12 percent
• E) 1.13 percent

---

Definitions:

Efficient Outcomes

Results or end-states that achieve the maximum benefit or utility with the minimal waste of resources.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic area.

Unemployment

The condition of being without a job, while actively searching for employment.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs.