Question
A. Calculate the bond equivalent yield and effective annual return on a jumbo CD that is 110 days from maturity and has a quoted nominal
A. Calculate the bond equivalent yield and effective annual return on a jumbo CD that is 110 days from maturity and has a quoted nominal yield of 6.72 percent. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))
B. What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 96.375 percent of its face value and is 80 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))
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