Answer: a 0.049, 0.05 and 0.05 or 5%
b 0.039, 0.041 and 0.041 or 4%
Explanation:
Ai discounted yield = [(Face value - purchase price)/Face value] * 360/ maturity
Discount yield =:[(100000 - 96040)/100000] * 360/290
 
 = 0.0396* 1.24
 = 0.049
ii. Bond equivalent yield (BEY) = [(Face value - purchase price)/purchase value] * 365/M
 BEY= [(100000 - 96040)/96040] * 365/290
 BEY = 0.05
iii EAR = [(1+BEY/n)exp n - 1)
 EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]
 EAR = [(1 + 0.05/1.26) exp (1.26) - 1
 EAR = (1.04) exp (1.26) - 1
 EAR = 0.05 or 5%
The same formula are applied for the B part
 Discount yield = [(100000-96040)/100000] * 360/365
 Discount yield = 0.0396 * 0.986
 = 0.039
B ii. BEY = [(100000 - 96040)/96040] * 365/365
 BEY = 0.041 × 1
 BEY = 0.041
B iii. EAR = [(1 + 0.041/(365/365))exp (365/365) - 1
 EAR = (1 + 0.41) - 1
 EAR = 0.041 or 4%