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