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    Calculation of Yield to Maturity: determine annualized yield

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    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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    Solution Preview

    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

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