An investor buys a 10 3/8 treasury note for 103 11/32 and sells it one year later for 101 13/32. What is the holding period yield? A) 8.14%. B) 8.22%. C) 8.16%. D) 8.32%.

p0 = 103 11/32 = 103.34375 p1 = 101 13/32 = 101.40625 d1 = 10 3/8 = 10.375? HPY = (101.40625 + 10.375)/103.34375 - 1 = 8.16% C Not sure if this is right. I remember getting this q wrong before.

Yep, thatâ€™s right. I got it wrong too. Completely forgot how to calculate notes. =/

a stupid question but how do you compute it (10 3/8) in a BAII+ ???

Do a division: 3/8= 0.375 and sum up to 10.

okie thank you !!!

C

C it is At first, I forgot to add coupon to the numerator : (