A commercial bill with a face value of $100,000 has 105 days to maturity is bought...
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A commercial bill with a face value of $100,000 has 105 days to maturity is bought by an investor for $98, 888 and sold with 24 days remaining to maturity for $99, 327. Assume 365 days in a year, and please round your answer to the second decimal place. (a) What is the yield the bill was purchased for? % (Round the percentage to 2 decimal places) (b) What was the investor's holding period yield? % (Round the percentage to 2 decimal places) A commercial bill with a face value of $100,000 has 105 days to maturity is bought by an investor for $98, 888 and sold with 24 days remaining to maturity for $99, 327. Assume 365 days in a year, and please round your answer to the second decimal place. (a) What is the yield the bill was purchased for? % (Round the percentage to 2 decimal places) (b) What was the investor's holding period yield? % (Round the percentage to 2 decimal places)
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Answer rating: 100% (QA)
a The yield that the bill was purchased for can be calculated using the following formula Yield Face ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
Posted Date:
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