A T bill with face value Rs 10,000 and 180 days to maturity is selling at Rs 9,700, what will be annual yield on T bill?

Step 1 – Find the discount
$$\text{Discount}=\text{Face value}-\text{Purchase price}=10,000-9,750=250$$

Step 2 – Compute the discount rate for the holding period
$$\frac{\text{Discount}}{\text{Purchase price}}=\frac{250}{9,750}=0.025641$$

Step 3 – Annualise (using 365‑day year)
$$\text{Annual yield}=0.025641\times \frac{365}{180}=0.05204$$

Result
$$\boxed{\text{Annual yield}=5.20\%}$$