Explore BrainMass
Share

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.

© BrainMass Inc. brainmass.com June 24, 2018, 12:54 pm ad1c9bdddf

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