Which of the following formula is used to calculate the yield of treasury bills (T-bills) where Y =…

For a bill redeemed at100 bought for P, holding-period return is(100−P)/P; annualizing on a365-day basis givesY=((100−P)×365×100)/(P×D). The first cancels price and ignores the discount, the second confuses days with gain, and the fourth subtracts days from face value. Strict bank-discount yield instead uses face value100 in the denominator, so the selected formula is investment yield under the stated option set. Y = (P×365×100)/(P×D) Y = (D×365×100)/(P×D) Y = ((100−P)×365×100)/(P×D) Y = ((100−D)×365×100)/(P×D)