You are purchasing a $4,250,000.00 Money Market CD that matures in 363 days and is quoted...
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You are purchasing a $4,250,000.00 Money Market CD that matures in 363 days and is quoted as a 7.12% interest at maturity. What is the straigh yield if you hold this CD to maturity? 6) You are purchasing a $9,750,000.00 Money Market CD that matures in 322 days and is quoted as a 3.11% Interest at maturity. What is the money market yield if you hold this CD to maturity? 7) $2,000,000.00 is invested at the beginning of June. On June 11 another $800,000.00 is invested in the same account. At the end of June the account is worth $2,020,000.00. The cash-flow adjusted rate of return for June is % You are purchasing a $4,250,000.00 Money Market CD that matures in 363 days and is quoted as a 7.12% interest at maturity. What is the straigh yield if you hold this CD to maturity? 6) You are purchasing a $9,750,000.00 Money Market CD that matures in 322 days and is quoted as a 3.11% Interest at maturity. What is the money market yield if you hold this CD to maturity? 7) $2,000,000.00 is invested at the beginning of June. On June 11 another $800,000.00 is invested in the same account. At the end of June the account is worth $2,020,000.00. The cash-flow adjusted rate of return for June is %
Expert Answer:
Answer rating: 100% (QA)
5 To calculate the straight yield for a Money Market CD you can use the following formula Straight Yield Interest at Maturity Purchase Price 365 Days ... View the full answer
Related Book For
Concepts In Federal Taxation 2017
ISBN: 9781305965119
24th Edition
Authors: Kevin E. Murphy, Mark Higgins
Posted Date:
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