What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that currently sells at 97.50 percent of its face value and is 145 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield Bond equivalent yield Effective annual return ২| ২
What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that currently sells at 97.50 percent of its face value and is 145 days from maturity? (Use 360 days for discount yield and 365 days in a year for bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Discount yield Bond equivalent yield Effective annual return ২| ২
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Question
![What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that currently
sells at 97.50 percent of its face value and is 145 days from maturity? (Use 360 days for discount yield and 365 days in a year for
bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal
places. (e.g., 32.161))
Discount yield
Bond equivalent yield
Effective annual return
২| ২](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50ecada7-73ae-429a-bfd7-3c03fe93abe4%2F8baa63e9-1ff8-46d7-8352-bd625dc5e4a3%2Fmkotu5s.jpeg&w=3840&q=75)
Transcribed Image Text:What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that currently
sells at 97.50 percent of its face value and is 145 days from maturity? (Use 360 days for discount yield and 365 days in a year for
bond equivalent yield and effective annual return. Do not round intermediate calculations. Round your answers to 3 decimal
places. (e.g., 32.161))
Discount yield
Bond equivalent yield
Effective annual return
২| ২
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