Question
Calculate the bank discount rate of return (DR) and the YTM-equivalent return for the following money market instruments : a) Purchase price, $96; par value,
Calculate the bank discount rate of return (DR) and the YTM-equivalent return for the following money market instruments :
a) Purchase price, $96; par value, $100; maturity, 90 days.
b) Purchase price, $97.50; par value, $100; maturity, 270 days.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
