MHB Math Word Problem - price and yield of T-bill

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The discussion revolves around calculating the price and bond equivalent yield of a T-bill with a face value of $10,000 and a maturity of 96 days at a bank discount ask yield of 4.3%. The price of the T-bill is calculated as $9,890, and the bond equivalent yield is approximately 4.182%. There is confusion regarding the term "bank discount ask yield," prompting a request for clarification. Additionally, a question arises about the inconsistency in using 365 days for yield calculations when the problem specifies using 360 days. The thread highlights the importance of consistent day count conventions in financial calculations.
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A T-bill with face value of \$10,000 and 96 days to maturity is selling at a bank discount ask yield of 4.3%. A. What is the price of the bill? (use 360 days a year) B. what is its bond equivalent yield? A. .043 * (96/360) = .011 .011 * (1-.043) = \$9,890 B. 1.1% * (365/96) = 4.182%. Are these answers correct?
 
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I know what "bank discount" means but I do not recognize the phrase "bank discount ask yield". Could you explain that?

For B, having been told "use 360 days a year", why do you use 365?
 

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