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Tags
#has-images #reading-7-discounted-cashflows-applications
Question
- P0 = [...]
- P1 = [...]
- D1 = [...]
Answer
the initial price of the instrument
the price received for the instrument at its maturity
the cash distribution paid by the instrument at its maturity.
the price received for the instrument at its maturity
the cash distribution paid by the instrument at its maturity.
Tags
#has-images #reading-7-discounted-cashflows-applications
Question
- P0 = [...]
- P1 = [...]
- D1 = [...]
Answer
?
Tags
#has-images #reading-7-discounted-cashflows-applications
Question
- P0 = [...]
- P1 = [...]
- D1 = [...]
Answer
the initial price of the instrument
the price received for the instrument at its maturity
the cash distribution paid by the instrument at its maturity.
the price received for the instrument at its maturity
the cash distribution paid by the instrument at its maturity.
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Subject 4. Different Yield Measures of a U.S. Treasury Bill
gnores the effect of interest on interest (compound interest). Holding period yield (HPY) is the return earned by an investor if the money market instrument is held until maturity: <span>P 0 = the initial price of the instrument P 1 = the price received for the instrument at its maturity D 1 = the cash distribution paid by the instrument at its maturity (that is, interest). Since a pure discount instrument (e.g., a T-bill) makes no interest payment, its HPY is (P 1 - P 0 )/P 0 . Note that HPY is computed on the basis of purchase price, n
Subject 4. Different Yield Measures of a U.S. Treasury Bill
gnores the effect of interest on interest (compound interest). Holding period yield (HPY) is the return earned by an investor if the money market instrument is held until maturity: <span>P 0 = the initial price of the instrument P 1 = the price received for the instrument at its maturity D 1 = the cash distribution paid by the instrument at its maturity (that is, interest). Since a pure discount instrument (e.g., a T-bill) makes no interest payment, its HPY is (P 1 - P 0 )/P 0 . Note that HPY is computed on the basis of purchase price, n
Summary
| status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
|---|---|---|---|---|---|---|---|
| repetition number in this series | 0 | memorised on | scheduled repetition | ||||
| scheduled repetition interval | last repetition or drill |
Details
No repetitionsDiscussion
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