FIN208 Financial Markets Services

Financial Markets ServicesTU Board 2025

A treasury bill with 90 days to maturity, a face value of Rs 100,000 is selling for Rs 98,500 on bank discount basis. a. What is annualized yield of T bill on the bank discount basis? b. Calculate…

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A treasury bill with 90 days to maturity, a face value of Rs 100,000 is selling for Rs 98,500 on bank discount basis. a. What is annualized yield of T-bill on the bank discount basis? b. Calculate its bond equivalent yield. c. Calculate the holding period return on T-bill. d. What is the effective annual yield on the T-bill?

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