The Discount Yield on a T-Bill Differs from the T-Bill's

The discount yield on a T-bill differs from the T-bill's bond equivalent yield (BEY) because
I. the discount yield is the return per dollar of face value and the BEY is a return per dollar originally invested.
II. a 360-day year is used on the discount yield and the BEY uses 365 days.
III. the discount yield is calculated without compounding,and the BEY is calculated with compounding.

A) I only
B) II only
C) I and II only
D) II and III only
E) I,II,and III

Correct Answer:

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