Question: A three-month bill that was issued on an annually compounded yield of 4%. One month has passed and the investment still offers the same annually
A three-month bill that was issued on an annually compounded yield of 4%. One month has passed and the investment still offers the same annually compounded return. Suppose another month has passed, so the bill has only one month left to run. It is now selling at a discount of 10%. a. What is the yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What was your realized return over the two months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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