A Bill with 90 Days to Maturity Initially Has a Yield

question 18

Multiple Choice

A bill with 90 days to maturity initially has a yield of 8% p.a.and a face value of $100 000.This bill is held for 45 days and sold as a 45-day bill at a yield of 6%.What is the continuously compounding holding period rate of returns over the 45 days?

• A) \( 0.97 \% \)
• B) \( 1.22 \% \)
• C) \( 1.76 \% \)
• D) \( 3.00 \% \)

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behavior, thoughts, and emotions.

Visual Association Cortex

A part of the cerebral cortex that processes visual information, contributing to the recognition and interpretation of objects.

Primary Visual Cortex

The area of the brain located in the occipital lobe that processes visual information.

Identify

The process of recognizing or establishing something's identity or nature.