You Buy a 181-Day 2

question 104

Multiple Choice

You buy a 181-day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yield?

• A) 2.60%
• B) 2.75%
• C) 2.775%
• D) 2.813%

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Definitions:

Concussion

A form of brain damage resulting from a head impact, fall, or other incident that causes the brain to move forcefully within the skull.

Long-term Storage

The continuous storage of information which can last from days to decades, allowing for the retrieval of memories over a long period.

Network of Associations

A concept in cognitive psychology referring to how ideas or memories are linked together in the mind through shared qualities or experiences.

Spreading Activation Model

A cognitive model that explains how information is retrieved in the brain based on the concept of networks of connected ideas.