An investor is considering a T-bill investment. If it sells for $248,750 with 67 days to maturity, what is the appropriate yield for comparison?

To determine the appropriate yield for a T-bill investment, it's important to calculate the annualized yield based on the purchase price, the face value (which is typically $250,000 for a T-bill), and the time to maturity. In this case, the T-bill is sold for $248,750 and has 67 days to maturity.

First, we need to find the discount amount, which is the difference between the face value and the purchase price:

[ \text{Discount} = \text{Face Value} - \text{Purchase Price} = 250,000 - 248,750 = 1,250 ]

Next, we calculate the yield using the formula for annualized yield on a T-bill:

[ \text{Yield} = \left( \frac{\text{Discount}}{\text{Purchase Price}} \right) \times \left( \frac{365}{\text{Days to Maturity}} \right) ]

Substituting the values we have:

[ \text{Yield} = \left( \frac{1,250}{248,750} \right) \times \left( \frac{365}{67} \right