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Calculation of Yield to Maturity: determine annualized yield

The percentage discount rate on 90-day bank bills is 7.3% p.a.

Determine the annualized yield from this bill if it was held to maturity.

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Refer to attached file.

The percentage discount rate on 90-day bank bills is 7.3% p.a.

Determine the annualized yield from this bill if it was held to maturity.

Find Maturity Value first.

Assumptions: 365 days a year.

Future Value - Maturity Value No of days ...

Solution Summary

The solution shows the steps, the formulas and the calculations to determine the annualized yield from a bill held to maturity.

$2.19