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You Buy a 30-Day 4% CD with a Face Value

Question 298

Multiple Choice

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?


A) 4.05%
B) 3.891%
C) 3.838%
D) 1.946%

Correct Answer:

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