Exercise #5

Exercise #5 - Days 360 yield Discount x 365 BEY 04947 . 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Finance 355: Investments Instructor: Shuming Liu In-Class Exercise 5 Chapter 9 Question 11 A Treasury bill with 82 days to maturity is quoted at 98.921. What is the bank discount yield, the bond equivalent yield, and the effective annual return? ANSWER: or 4.737% or 4.855% or 4.947% 04855 . 0 04737 . 0 82 360 04737 . 0 365 yield Discount x maturity to
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Days 360 yield Discount x 365 BEY 04947 . 1 82 / 365 0.04855 1 EAR ) 82 / 365 ( 04737 . 82 360 100 98.921 1 Maturity to Days 360 Value Face Price 1 Yield Discount...
View Full Document

Ask a homework question - tutors are online