An investor buys a 90-day promissory note at a yield of 9.120% p.a. and sells it 30 days laterat a vield of 8.925% p.a. What effective annua rate of return did the investor make?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
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An investor buys a 90-day promissory note at a yield of 9.120% p.a. and sells it 30 days laterat a vield of 8.925% p.a. What effective annua rate of return did the investor make? 

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