Which of the following statements regarding Bond equivalent yield (BEY) and discount yield is/are false: I....
Which of the following statements regarding Bond equivalent yield (BEY) and discount yield is/are false:
I. The discount yield is the return as a percentage of face value and the BEY is a return per dollar originally invested.
II. A 365 day year is used on the discount yield and the BEY uses 360 days
III. BEY is calculated the compounding effect while the discount yield is calculated without compounding
Select one:
a. II and III only
b. II only
c. I, II and III
d. I and II only
e. I only
Homework Answers
A. 2 & 3
Discount yield calculation uses a 30-day month and 360-day year to simplify calculations. Bond Equivalent Yield - BEY represents a calculation of 30 day month to 365 day year.
BEY ignores the effect of compounding and therefore might not provide a true and fair picture in certain situations.
Add Answer to:
Which of the following statements regarding Bond equivalent
yield (BEY) and discount yield is/are false:
I....
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 99.375 percent of its face value and is 65 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
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...
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)) Discount yield Bond equivalent yield Effective annual return % %
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...
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)) Discount yield Bond equivalent yield Effective annual return %
What is the discount yield, bond equivalent yield, and effective annual return on a $6 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $6 million commercial paper issue that currently sells at 98.25 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
What is the discount yield, bond equivalent yield, and effective annual return on a $8 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $8 million commercial paper issue that currently sells at 98.75 percent of its face value and is 125 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 retum
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 93 3/8 percent of its face value and is 70 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.
What is the discount yield, bond equivalent yield, and effective annual return on a $5 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $5 million commercial paper issue that currently sells at 98.75 percent of its face value and is 131 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))
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million...
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million commercial paper issue that currently sells at 96.375 percent of its face value and is 70 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)) 1.) Discount Yield % (Round all answers to 3 decimal places)...
Cant seem to figure out the last one, thank you! What is the discount yield, bond...
Cant seem to figure out the last one, thank you!
What is the discount yield, bond equivalent yield, and effective annual return on a $2 million commercial paper issue that currently sells at 98.00 percent of its face value and is 123 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) Answer...
180-day commercial paper can be bought at a 6.60 percent discount yield. What are the bond...
180-day commercial paper can be bought at a 6.60 percent discount yield. What are the bond equivalent yield (BEY) and the effective annual rate (EAR) on the commercial paper? (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 2.161))
What is the discount yield, bond equivalent yield, and effective annual return on a $1 million T-bill that currently sells at 99.375 percent of its face value and is 65 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
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)) Discount yield Bond equivalent yield Effective annual return % %
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)) Discount yield Bond equivalent yield Effective annual return %
What is the discount yield, bond equivalent yield, and effective annual return on a $6 million commercial paper issue that currently sells at 98.25 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
What is the discount yield, bond equivalent yield, and effective annual return on a $8 million commercial paper issue that currently sells at 98.75 percent of its face value and is 125 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 retum
Cant seem to figure out the last one, thank you!
What is the discount yield, bond equivalent yield, and effective annual return on a $2 million commercial paper issue that currently sells at 98.00 percent of its face value and is 123 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) Answer...
Most questions answered within 3 hours.
-
Marla’s Massages and More bought a special massage table two
years ago for $9,300. At the...
asked 5 minutes ago -
Suppose you require a peak output voltage of 15.0 V and have
available an AC source...
asked 5 minutes ago -
We
conduct A study to estimate the mean age of the population of women
at the...
asked 17 minutes ago -
.13 : Assume that we make an enhancement to a computer that
improves some mode of...
asked 18 minutes ago -
4)
Find the tension in an elevator cable if the 1000 kg elevator is
descending with...
asked 24 minutes ago -
A random sample of 51 newborn babies was taken at the Hospital.
The sample mean was...
asked 22 minutes ago -
Industry standards suggest that 16% of new vehicles require
warranty service within the first year. Jones...
asked 34 minutes ago -
1) Comment of this statement: “A compiler transforms high-level
language statements directly into object codes”.
asked 37 minutes ago -
Calculate the molality, mole-fraction and percent mass of 28.9M
HF at 25 degrees Celcius of the...
asked 46 minutes ago -
A developmental psychologist believes that children raised in
bilingual families will have higher verbal fluency at...
asked 52 minutes ago -
A fast food meal has 5660 kJ of energy. A person uses energy at
a rate...
asked 1 hour ago -
The pKb for a generic amine(R-NH2)) in
aqueous solution is 6.30. What is its pKa?
asked 1 hour ago