The bond equivalent yield of a 180-day banker’s acceptance quoted at a discount
rate of 4.25% for a 360-day year is closest to:
A 4.31%.
B 4.34%.
C 4.40%
Fixed Income
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Please refer this.
Discount yield = (F-P)/F * 360/ n * 100
DY = 2.125 of F
F = 100, P = 97.875
BEY = (F-P)/P*365/n * 100 = 2.125/97.875 * 365/180*100
BEY = 4.40
Hence answer is Option C i.e., 4.40%
Hope this helps!