9) What is the Discount Yield (DY) and the Bond Equivalent Yield (BEY) on a $5 million commercial paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity? A. 3.32% DY; and 3.46% BEY. B. 3.84% DY; and 3.94% BEY. C. 3.86% DY; and 3.89% BEY. D. 3.64% DY; and 3.74 % BEY.
9) What is the Discount Yield (DY) and the Bond Equivalent Yield (BEY) on a $5 million commercial paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity? A. 3.32% DY; and 3.46% BEY. B. 3.84% DY; and 3.94% BEY. C. 3.86% DY; and 3.89% BEY. D. 3.64% DY; and 3.74 % BEY.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
am. 132.
![9) What is the Discount Yield (DY) and the Bond Equivalent Yield (BEY) on a $5 million commercial
paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity?
A. 3.32% DY; and 3.46% BEY.
B. 3.84% DY; and 3.94% BEY.
C.
3.86% DY; and 3.89% BEY.
D. 3.64% DY; and 3.74 % BEY.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4813242c-ef99-4bcf-8e55-5652d0ac39e6%2F779080e7-337c-4074-b550-eca8196c7296%2Fdjmz03_processed.png&w=3840&q=75)
Transcribed Image Text:9) What is the Discount Yield (DY) and the Bond Equivalent Yield (BEY) on a $5 million commercial
paper issue that currently sells at 98.625 percent of its face value and is 136 days from maturity?
A. 3.32% DY; and 3.46% BEY.
B. 3.84% DY; and 3.94% BEY.
C.
3.86% DY; and 3.89% BEY.
D. 3.64% DY; and 3.74 % BEY.
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