The Current (Simple Annualized) Yield, Based on the Holding-Period Return

question 12

Short Answer

The current (simple annualized) yield, based on the holding-period return for the most recent 7 days, is reported for a money market mutual fund as 6.17%. What is the fund's corresponding effective (annualized) yield?

---

Definitions:

Accrued Interest

Interest that has been earned but not yet paid.

Semiannually

Occurring twice a year, typically used in the context of payments, interest calculations, or reports.

Semiannually

Occurring twice a year or every six months.

Accrued Interest

The interest that has accumulated on a bond or other fixed-income security since the last interest payment was made.