yield. This yield measure makes the quoted yield on a Treasury bill more comparable to yields on Treasury notes and bonds that use an actual/actual day count conven- tion.6In order to convert the yield on a bank discount to a bond-equiva- lent yield, the following formula is used:     Bond-equivalent yield =   T(Y) ----------------------------- 360- t(Yd)   where T is the actual number of days in the calendar year (i.e., 365 or 366). As an example, using the same Treasury bill with 28 days to maturity and a face value of $1,000 that would be quoted at 1.76% on a bank dis- count basis, the bond-equivalent yield is calculated as follows:   Bond-equivalentyield= 365(0.0176) - = 0.0179 = 1.79% --------------------------------------------- 360- 28(0.0176)     This number matches the bond-equivalent yield given by the Bloomberg screen in Exhibit 3.3. There are a couple of points to note in this calculation. First, we used 365 in the numerator because the year 2002 is a non-leap year. Second, the formula for the bond-equivalent yield presented above assumes that the current maturity of the Treasury bill in question is 182 days or less.       SECONDARY MARKET   The secondary market for Treasury securities is an over-the-counter mar- ket in which a group of U.S. government securities dealers offer continu- ous bid and ask prices on outstanding issues. There is virtual 24-hour trading of Treasury securities. The three primary trading locations are New York, London, and Tokyo. Trading begins at 8:30 a.m. Tokyo time (7:30 p.m. New York time) and continues to about 4:00 p.m. Tokyo time (3:00 a.m. New York time).7Trading then moves to London where trad-   6Day count conventions determine the number of days in a coupon period and the number of days from the last coupon payment to the settlement date. For a coupon Treasury, both are equal to the actual number of days. The day count convention is referred to as "actual/actual." 7These trading hours apply when New York is on daylight savings time. The main difference when New York is on standard time is that Tokyo starts an hour earlier relative to New York (6:30 P.M. New York time.)