Register
What is the discount yield on a $10,000 million certificate of deposit (CD) is selling for $9877. Assume a 181-day investment. a. 2.84% b. 2.37% c. 2.48% d. 2.45% e. 2.49%
105k views
0 votes
What is the discount yield on a $10,000 million certificate of deposit (CD) is selling for $9877. Assume a 181-day investment.

a. 2.84%
b. 2.37%
c. 2.48%
d. 2.45%
e. 2.49%

User Ibnu Habibie
by
4.9k points

1 Answer

5 votes

Answer: d. 2.45%

Step-by-step explanation:

The discount yield on an instrument can be calculated by the formula;

Discount Yield = ((Face Value - Selling Price) / Face Value) * 360 / days to Maturity

= ((10,000 - 9,877) / 10,000) * 360/181

= 0.0123 * 360/181

= 2.45%

User Artyom Chernetsov
by
4.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.4m questions

7.0m answers

Other Questions

Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC
For this question, assume that the expected rate of inflation is a function of the past year's inflation. Also, assume that the unemployment rate has been equal to the natural rate of unemployment for
Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's
Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Link Copied!