Bond Equivalent Yielc = Yield * 365 / Days
= 7.3% * 365 / 103
= 25.87%
Bond Effective Annual Yield :
= (1+r)^n - 1
r is YTM
n is time period
= (1+r)^n - 1
= (1+0.073)^3.54 - 1
= (1.073)^3.54 - 1
= 1.2833 - 1
= 0.2833 i.e 28.33%
A jumbo (i.e., negotiable) CD has a quoted yield of 7.3%. This is the yield conventionally quoted for this security. It...
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A bank has issued a six-month, $2.8 million negotiable CD with a 0.55 percent quoted annual interest rate lico, spl a. Calculate the bond equivalent yield and the EAR on the CD. b. How much will the negotiable CD holder receive at maturity? c. Immediately after the CD is issued, the secondary market price on the $3 million CD falls to $2799.000. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2.8 million...
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A zero-coupon Treasury security (that is, a T-bill) has 77 days to maturity and a discount yield of 3.4%. Calculate the nominal yield (we have also called this the bond equivalent yield) for this security. Answer in percent terms to three decimal places. Do not enter the percent sign.
A zero-coupon Treasury security (that is, a T-bill) has 50 days to maturity and a discount yield of 4.2%. Calculate the effective yield for this security. (This is not the bond equivalent yield, but rather the equivalent of an EAR (effective annual rate).) Answer in percent terms to two decimal places. Do not enter the percent sign. Do not assume the inputs are the same as for the previous question. You can assume whatever face or par value you want,...