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Calculate the yield to an investor available from the following commercial bill:
Face value $100,000
Market price $98,500
Maturity 90 days time
Suggested Answer: B
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37 comments · newest first
SE
Sean
12 months ago
Yeah, 4.5% seems reasonable based on those numbers.
VI
Virgie
12 months ago
Definitely not $1,500, that’s just the dollar amount difference.
RE
Rebecka
1 year ago
Wait, is it really that high? Sounds off to me.
LE
Lennie
1 year ago
I think it’s around 4.5%, right?
RE
Reed
1 year ago
The yield is calculated using the formula: (Face Value - Market Price) / Market Price * (365 / Days to Maturity).
HE
Herman
1 year ago
I feel like the answer should be around 4.5%, but I’m not completely confident. I hope I remember the steps correctly!
AV
Avery
1 year ago
I think the yield is calculated by taking the difference between face value and market price, but I can't recall the exact formula.
AN
Anna
1 year ago
This question feels similar to one we practiced where we had to find the yield based on the discount. I think I might go with option B.
TE
Tegan
1 year ago
I remember we calculated yield in class, but I'm not sure if I should use the annualized rate or just for the 90 days.
CL
Claribel
1 year ago
This looks like a pretty straightforward A/B testing setup, but I want to make sure I understand the requirements correctly. The key things I need to focus on are setting up the traffic distribution and handling the special case for European customers.
VA
Valentin
1 year ago
The risk breakdown structure seems like the most logical choice here. It allows you to break down and analyze the different risk factors in a structured way.
CA
Carlota
1 year ago
Wait, should we really block access to the DR datacenter? It feels a bit risky if something goes wrong during the transition back.
LE
Lezlie
1 year ago
Ah, I remember learning about this in class. A la carte refers to a menu where you pay individually for each item, rather than a fixed price for the whole meal. I'm confident A is the right answer here.
CO
Colton
1 year ago
Wait, is this a trick question? I better review the formula for yield calculation to be sure.
DE
Desirae
1 year ago
So, did you figure out the yield for the commercial bill?
MO
Moon
1 year ago
The yield to an investor is calculated using the formula: (Face Value - Market Price) / Market Price * (365 / Days to Maturity)
RO
Rory
1 year ago
I think you just need to use the formula for yield calculation to find the answer.
BE
Beula
2 years ago
Haha, I bet the answer is not 'D) $1,500' - that would be way too obvious!
MA
Maia
1 year ago
Cecil: Let's see who's right!
RO
Roselle
1 year ago
User 3: I'm going with C) 6.1%
CE
Cecil
1 year ago
User 2: No way, I believe it's B) 4.5%
QU
Queenie
1 year ago
User 1: I think the answer is A) 1.5%
QU
Queen
1 year ago
No, I believe it's B) 4.5%
KA
Kallie
1 year ago
B) 4.5%
KA
Katy
1 year ago
I think it's A) 1.5%
SH
Shonda
1 year ago
A) 1.5%
KR
Kristel
2 years ago
Hmm, let me double-check my math. Option C seems right, but I'll keep an eye out for any trick questions.
DE
Desirae
1 year ago
I agree, let's go with that
VA
Van
1 year ago
I think it's option C, 6.1%
RE
Regenia
2 years ago
This is a straightforward yield calculation, I'll go with option C.
AL
Alex
1 year ago
The market price is lower than the face value, so the yield should be higher.
LE
Leonardo
1 year ago
I would go with option C as well.
KA
Kallie
1 year ago
I agree, the yield calculation seems simple.
IR
Irma
1 year ago
I think option C is the correct answer.
KR
Kristel
2 years ago
I agree with Shenika, the yield should be 4.5% because the market price is lower than the face value
SH
Shenika
2 years ago
I disagree, I believe the correct answer is B) 4.5%
DA
Dahlia
2 years ago
I think the answer is A) 1.5%