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ACI

3I0-012 · Question #157

You buy a 30-day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued. You sell it in the secondary market after 10 days at 4.05%. What is your holding period yield?

The correct answer is B. 3.891%. See the full explanation below for the reasoning.

Question

You buy a 30-day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued. You sell it in the secondary market after 10 days at 4.05%. What is your holding period yield?

Options

  • A4.05%
  • B3.891%
  • C3.838%
  • D1.946%

How the community answered

(32 responses)
  • A
    3% (1)
  • B
    81% (26)
  • C
    9% (3)
  • D
    6% (2)

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Full 3I0-012 Practice