ACI
3I0-012 · Question #598
You buy a 181-day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yield?
The correct answer is C. 2.775%. See the full explanation below for the reasoning.
Question
You buy a 181-day 2.75% CD with a face value of USD 1,500,000 at par when it is issued. You sell it in the secondary market after 150 days at 2.60%. What is your holding period yield?
Options
- A2.60%
- B2.75%
- C2.775%
- D2.813%
How the community answered
(31 responses)- A6% (2)
- B3% (1)
- C81% (25)
- D10% (3)
Community Discussion
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