A bank-accepted bill with a face value of $100 000 currently has 30 days to expiry.If the current price of the bank-accepted bill is $93 809,what is the implied annual yield?

Question

Quizplus · Accepted Answer

Re-arranging equation 5.1,for the bank-accepted bill described in the question,we obtain an annual implied yield of [(100000/93809 - 1)/(30 / 365)] = 0.08 or 8.0%.

A Bank-Accepted Bill with a Face Value of $100 000 6.8% 6.8 \% 6.8%

A Bank-Accepted Bill with a Face Value of $100 000 $6.8 \%$