Reading 6: Discounted Cash Flow Applications - LOS d, (Par

答案和详解如下：

11、An investor has just purchased a Treasury bill for $99,400. If the security matures in 40 days and has a holding period yield of 0.604 percent, what is its money market yield?

A)   5.512%.

B)   5.436%.

C)   5.650%.

D)   5.569%.

The correct answer was B)

The money market yield is the annualized yield on the basis of a 360-day year and does not take into account the effect of compounding. The money market yield = (holding period yield)(360/number of days until maturity) = (0.604%)(360/40) = 5.436%.

12、A Treasury bill, with 45 days until maturity, has an effective annual yield of 12.50 percent. The bill's holding period yield is closest to:

A)   1.57%.

B)   12.50%.

C)   1.54%.

D)   1.46%.

The correct answer was D)    

The effective annual yield (EAY) is equal to the annualized holding period yield (HPY) based on a 365-day year. EAY = (1 + HPY)^365/t - 1. HPY = (EAY + 1)^t/365 – 1 = (1.125)^45/365 – 1 = 1.46%.

13、A Treasury bill has 90 days until its maturity and a holding period yield of 3.17 percent. Its effective annual yield is closest to:

A)   3.17%.

B)   13.49%.

C)   12.68%.

D)   13.30%.

The correct answer was B)

The effective annual yield (EAY) is equal to the annualized holding period yield (HPY) based on a 365-day year. EAY = (1 + HPY)^365/t - 1 = (1.0317) ^365/90 - 1 = 13.49%.

14、What is the effective annual yield of a T-bill that has a money market yield of 5.665 percent and 255 days to maturity?

A)   5.79 percent.

B)   4.01 percent.

C)   5.92 percent.

D)   5.67 percent.

The correct answer was A)

Holding Period Yield = 4.0127% = 5.665% x (255/360)

Effective Annual Yield = (1.040127)^365/255 = 1.0571 – 1 = 5.79%.