What Is the Annualized Yield of a 200 Days T-Bill

question 29

Multiple Choice

What is the annualized yield of a 200 days T-Bill with a purchase price of $940.00?

• A)20.0%
• B)17.15%
• C)9.40%
• D)6.38%
• E)11.90%

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Definitions:

Conversion Value

The financial worth of converting a convertible security, like a bond, into a set number of shares of the issuing company.

U.S. Treasury Note

A marketable U.S. government debt security with a fixed interest rate and a maturity between one and ten years.

Accrued Interest

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

Settlement

The process of exchanging payment for financial transactions, including securities, at their completion.