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Question
The discount yield on a T-Bill differs from the T-bill's bond equivalent yield (BEY) because
I. The discount yield is the return per dollar of face value and the BEY is a return per dollar originally invested.
II. A 360-day year is used on the discount yield and the BEY uses 365 days.
III. The discount yield is calculated without compounding, the BEY is calculated with compounding.
A. I only
B. II only
C. I and II only
D. II and III only
E. I, II, and III
Answer
This answer is hidden. It contains 1 characters.
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