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ACI

3I0-012 · Question #148

A US security yields 7% on an annually-compounded bond basis. What is the equivalent annually- compounded money market yield?

The correct answer is C. 6.90%. See the full explanation below for the reasoning.

Question

A US security yields 7% on an annually-compounded bond basis. What is the equivalent annually- compounded money market yield?

Options

  • A7.09%
  • B7.03%
  • C6.90%
  • D6.95%

How the community answered

(55 responses)
  • A
    5% (3)
  • B
    11% (6)
  • C
    80% (44)
  • D
    4% (2)

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