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SOVA2 [1]
3 years ago
14

You can buy commercial paper of a major u.S. Corporation for 495000 $ the paper has face value of 500000 $ and in 45 days from m

aturity calculate the Discount yield and bond equivalent yield on the commercial paper
Business
1 answer:
BartSMP [9]3 years ago
7 0

Answer:

Discount yield is 8%

Bond equivalent yield is 8.19%

Explanation:

The discount yield on the commercial paper is calculated as:

(($500,000 - $495,000)/$500,000 ) x (360/45)

= ($5,000/$500,000 x (360/45)

= 0.01 x 8

= 0.08

= 8%

And bond equivalent yield is calculated as:

(($500,000 - $495,000)/$495,000) x (365/45)

= ($5,000/$495,000) x 8.11

= 0.0101 x 8.11

= 0.0819

= 8.19%

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Answer:

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Which of the following terms describes making false statements about the financial condition of any insurer that are intended to
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A step out is a pricing practice in which a firm:
Katen [24]
I would say the answer is D
3 0
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Abigail is shopping for a new copier for her company. She has set her price range between $5,000 and $6,000. The copier must han
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Answer:

Option "C" is the correct answer to the following situation.

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Answer:

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