The yield on a 365 days T-Bill with a purchase price of $989.50 is 10.6%.

Question

Quizplus · Accepted Answer

The yield can be calculated using the following formula:
Yield = (Face Value - Purchase Price) / Purchase Price * (365 / Days until maturity)

Assuming a face value of $1000 and a maturity of 365 days, we can plug in the given values:

10.6% = (1000 - 989.50) / 989.50 * (365 / 365)

Simplifying this, we get:

10.6% = 0.0111

Therefore, the statement is true.

The Yield on a 365 Days T-Bill with a Purchase