Answer: 994745.83
Step-by-step explanation:
From the question, we are informed that a United States Treasury bill with 97 days to maturity is quoted at a discount yield of 1.95 percent and has a $1 million face value.
The bond equivalent yield will be calculated as:
= 100 - (97 × 1.95/360) × (1,000,000 / 100)
= 100 - (97 × 0.0054167) × 10000
= (100 - 0.5254167) × 10000
= 99.474583 × 10000
= 994745.83