Bond YTM/effective annual rate question
I retired from working for city government and for fun/interest I am reading Berk & DeMarzo’s Corporate Finance book. I don’t understand how they derived the answer for this problem: 3 year T bill sold for $100.002556 per $100 face value. What is the yield to maturity expressed as an effective annual rate. They say the answer is -0.01022%. Can someone explain. Thank you.
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