General Accounting A promissory note has 95 days until it matures, has a face value of $5,000,and is currently trading at a price of $4,925. What is the current yield ofthe security?Select one:a. 4%b. 5%c. 3%d. 6%

Step 1: Define Current YieldCurrent Yield is a measure of the annualized return an investor earns on…

Answered: A promissory note has 95 days until it…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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The yield on a 2 year T- note 4%, the yield on a one year Treasury security is 3%. What is the forward rate on the 1 year treasury security one year from today? Group of answer choices 5.01% 4% 3% 3.5%
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A promissory note has 95 days until it matures, has a face value of $5,000, and is currently trading at a price of $4,925. What is the current yield of the security? Select one: a. 4% b. 5% c. 3% d. 6%