Alice buys a newly-issued 13-week promissory note with a face value of $100,000 at a market...

 

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Alice buys a newly-issued 13-week promissory note with a face value of $100,000 at a market yield of 8.125% p.a. and sells it 14-days later at a market yield of 8.250% p.a. to James. Which of the following is closest to the effective annual rate of return that Alice made from the investment? O 9.17% p.a. O 8.69% p.a. O 7.57% p.a. 8.19% p.a. O 0.28% p.a. Alice buys a newly-issued 13-week promissory note with a face value of $100,000 at a market yield of 8.125% p.a. and sells it 14-days later at a market yield of 8.250% p.a. to James. Which of the following is closest to the effective annual rate of return that Alice made from the investment? O 9.17% p.a. O 8.69% p.a. O 7.57% p.a. 8.19% p.a. O 0.28% p.a.

Answer rating: 100% (QA)

Face value 100000 Marke... View the full answer