Calculate the discount yield on both securities

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Reference no: EM131884278

At one particular Treasury auction (once upon a time), the Treasury sold a batch of “three-month” bills at a price of $9,880.70 per $10,000, and sold an additional batch of “six-month” bills at $9,759.80 per $10,000. Calculate the discount yield on both securities, and also the actual return to investors (investment rate) on both. Make sure that you label the answers (there will be four) so that I know specifically what each rate represents, and show your work.

Reference no: EM131884278

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