Q7. If the holding period yield on a Treasury bill (T-bill) with 197 days until maturity is 1.07%, what is the effective annual yield? A) 0.58%. B) 1.99%. C) 1.07%.
Q8. Assume that a 1-month loan has a holding period yield of 0.80%. The bond equivalent yield of this loan is: A) 9.60%. B) 9.79%. C) 10.12%.
Q9. The effective annual yield for an investment is 10%. What is the yield for this investment on a bond-equivalent basis? A) 4.88%. B) 10.00%. C) 9.76%.
Q10. A 1-month loan has a holding period yield of 1%. What is the annual yield of this loan on a bond-equivalent basis? A) 6.15%. B) 12.30%. C) 12.00%. |