If an investor purchases a commercial bill with a face value of $100 000 with a yield of 7.00% per annum and then,in 60 days,sells it at a yield of 7.50% per annum,the investor will make a capital gain on the sale of the bill.

Question

Quizplus · Accepted Answer

When the investor sells it at the higher yield it means the price is lower. So the investor actually makes a capital loss.

If an Investor Purchases a Commercial Bill with a Face