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Answer and Explanation:
The computation is shown below:
Given that,
Price = $97.75
Time = 182 days
Face value = $100
Based on the above information
1) bank discount rate is
= (Face value - price) ÷ Face value × 365 / Time
= ($100 - $97.75) ÷ 100 × (365 / 182)
= 0.0225 × 2.005494
= 0.0451 (or) 4.51%
2) equivalent yield to maturity
= (Face value ÷ price)^365 ÷ Time - 1
= ($100 ÷ $97.75)^365 ÷ 182 -1
= 0.04669 (or) 4.66%