Questions

1) If the price of the 3M Treasury Bill is 4.245, what is the yield ?
The yield is 4.245 because Treasury bills (<1 year) are quoted in yield form, not in price form.

2) If the yield of the 3M Treasury Bill is 4.245, what is the price ?
Price = Face Value * (1 - (Yield * Days to Maturity / 360))

3) If you have a semi-annual US Treasury Note with a yield of 4.15% what is this yield annualised ?
annual yield = (1 + 0.0415) [2] - 1

4) If you have an annual paying Corporate Bond with a yield of 9.23% what is the bond equivalent yield ?
BEY = 2 ( ( 1+ 0.0923)[1/2] - 1 )
BEY = 0.090263 = 9.03%

5) If you have a semi-annual paying US Treasury Note with a bond equivalent yield of 9.15% what is the converted to an annual paying yield ?
annual yield = (1 + (0.0915 / 2) )[2] - 1
annual yield = 1.093593 - 1 = 9.36%

6) What is the Yield to Maturity for a Zero Coupon Bond selling for £274.78 with a principal of £1,000 maturing in 15 years.
For consistency we must use semi-annual paying.
We must multiple this value by 2.
The yield to maturity is 8.8%.

7) What is the yield of a new $100,000, 6%, 2-year Treasury Note priced at $92,000 ?
Using Excel Goal Seek the periodic yield is 5.27%
The yield is 10.54%

8) What is the yield of a $1,000,000, 1 year Treasury Bill offered at $880,000 ?
Remember that treasury bills do not have any coupons.
The yield is 13.20%