The effective annual yield of the treasury bill will equal 15.55%.
The effective annual yield means profit or returns that an investor will receive on a bond.
Three months Yield = (Par value - Current value) / Current value
Three months Yield = (100,000 - 96,454) / 96,454
Three months Yield = 0.03676363862
Three months Yield = 3.68%
Effective annual yield = (1+I)^n-1
Effective annual yield = (1+0.0368)^4 - 1
Effective annual yield = 1.15552661809 - 1
Effective annual yield = 0.15552661809
Effective annual yield = 15.55%
In conclusion, the effective annual yield of the treasury bill will equal 15.55%.
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