The formula for the money market yield is: [360 × bank discount yield] / [360 − (t × bank discount yield)]. Therefore, the money market yield is: [360 × 0.0382] / [360 − (38 × 0.0382)] = (13.752) / (358.548) = 0.0384, or 3.84%.
Alternatively: Actual discount = 3.82%(38 / 360) = 0.4032%.
T-Bill price = 100 − 0.4032 = 99.5968%.
HPR = (100 / 99.5968) − 1 = 0.4048%.
MMY = 0.4048% × (360 / 38) = 3.835%.
