Calculation of Treasury Bill(T-Bill) Yield|Effective Yield

Q1.An investor purchases a six month (182-day) T-bill with a Rs.10000 par value for 9850. If the investor holds the treasury bill to maturity , the Treasury bill discount yield is ..................... Percent

Ans: 3.05

Q2. An investor purchases a six month(182-day) T-bill with Rs.10000 par vlaue for Rs.9850. If the investor had sold T-bill after 100 days for Rs.9940, What will be annualized yield?

Ans:3.34

N= Par Value
Pc= Purchase Value
r= Yield
t= days (time)

Note: "r" is not effective Yield.