Question
Which of the following is true when comparing yield measures for money market instruments to yield measures for longer-term bond market yield measures? A)Money market
Which of the following is true when comparing yield measures for money market instruments to yield measures for longer-term bond market yield measures?
A)Money market yield measures are based on simple interest, while bond market yield measures are based on compound interest.
B)Money market yield measures are derived from discount interest quotations, while bond market yield measures are derived from add-on interest.
C)Money market yield measures have a periodicity of one by design, while bond market yield measures have a periodicity that varies with coupon payment frequency.
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