If you purchase a $10,000 short-term (90-day) negotiable certificate of deposit for $9,740, what is the discount yield, the simple yield, and the true compound yield? Assume 360 days per year for discount yield and 365 days per year for simple and compound yield. Round your answers to two decimal places. Discount yield: % Simple yield: % Compound yield: %

If you purchase a $10,000 short-term (90-day) negotiable certificate of deposit for $9,740, what is the discount yield, the simple yield, and the true compound yield? Assume 360 days per year for discount yield and 365 days per year for simple and compound yield. Round your answers to two decimal places. Discount yield: % Simple yield: % Compound yield: %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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