the face value and the price F = face value t = actual number of days remaining to maturity   As an example, suppose a Treasury bill with 91 days to maturity and a face value of $100 trading at a price of $98.5846. The dollar dis- count, D, is computed as follows:     D = $100 - $98.5846 = $1.4054   Therefore, the annualized yield on a bank discount basis (expressed as a decimal)   $1.4054 360 Yd = --------------------- ´--------- = 5.56% $100 91     Given the yield on a bank discount basis, the price of a Treasury bill is found by first solving the formula for the dollar discount (D) as follows:   D = Yd´ F ´ (t/360) The price is then price = F - D   As an example, suppose a 91-day bill with a face value of $100 has a yield on bank discount basis of 5.56%, D is equal to   D = 0.0556 ´ $100 ´ 91/360 = $1.4054   Therefore,   price = $100 - $1.4054 = $98.5946   As noted earlier, the quoted yield on a bank discount basis is not a meaningful measure of the potential return from holding a discount instru- ment for two reasons. First, the measure is based on a face-value investment rather than on the actual dollar amount invested. Second, the yield is annu- alized according to a 360-day rather than a 365-day year, making it difficult to compare discount yields with the yields on Treasury notes and bonds that