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Basic Question 11 of 12

A 182-day U.S. Treasury bill has a face value of $100,000 and currently sells for $98,500. Which of the following yields is most likely the lowest?

A. the bank discount yield
B. the money market yield
C. the holding period yield

User Contributed Comments 5

User Comment
Chl4072 Why the note never explain money market yield and bank discount yield...?

Too simplified...
idzani Assumed knowledge included in this question. I guess this question would be more applicable in the later stages of the course
Apoorv34 I think Calculation of Money market Yield is wrong.
It's HPY * 360/days.
choas69 holding period return should 98.5-100/98.5 why is it the opposite ?
sunxx320 @choas69: Face value actually means the 'future value' here. So face value of 100K is in time period t. Currently sells for 98.5K is in time period t-1. That's why the equation is 100k-98.5k.
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Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

calculate and interpret different approaches to return measurement over time and describe their appropriate uses;

CFA® 2025 Level I Curriculum, Volume 1, Module 1.