A bank is considering purchasing a Treasury note with a face value of $500 000 that is currently selling for $487 324,with 180 days to maturity.What is the note currently yielding?

Question

Quizplus · Accepted Answer

The yield can be calculated using the formula for the annualized yield: Yield = [(Face Value - Purchase Price) / Purchase Price] * (365 / Days to Maturity). Plugging in the values: Yield = [($500,000 - $487,324) / $487,324] * (365 / 180) = 0.0527 or 5.27%.

A Bank Is Considering Purchasing a Treasury Note with a Face