A Treasury Bill Has 36 Days Left to Maturity

question 26

Multiple Choice

A Treasury bill has 36 days left to maturity. The bank discount yield on the bill is 4.14 percent. What is the effective annual rate?

• A) 4.30 percent
• B) 4.36 percent
• C) 4.40 percent
• D) 4.45 percent
• E) 4.49 percent