CFA Practice Question

CFA Practice Question

A U.S. T-bill has 90 days to maturity and face value $100,000. The market price is $99,150. The annual money market yield on the bill is approximately:
A. 0.0086
B. 0.0343
C. 0.0172
Explanation: The yield over 90 days is found by ($100,000/$99,150) - 1 = 0.8573%. To get approximate annual yield just multiply by 4.

User Contributed Comments 0

You need to log in first to add your comment.