Bond YTM/effective annual rate question
I retired from working for city government and for fun/interest I am reading Berk & DeMarzo’s Corporate Finance book. I don’t understand how they derived the answer for this problem: 3 year T bill sold for $100.002556 per $100 face value. What is the yield to maturity expressed as an effective annual rate. They say the answer is -0.01022%. Can someone explain. Thank you.
Sed impedit sunt dolorem voluptatum repellendus maxime doloribus. Laboriosam eius aut sint dolores aliquam recusandae.
Alias possimus rerum quis doloribus eaque porro aperiam. Facilis et ab dolore. Nihil quaerat nesciunt ea quia. Deserunt qui qui dolores ullam.
Omnis sapiente assumenda magni id. Consectetur officia saepe dolore et autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...