Which of the following are true of the yield on a discount basis as a measure of the interest rate?
A) It uses the percentage gain on the purchase price of the security, rather than the percentage gain on the face value of the security.
B) It puts the yield on the annual basis of a 360-day year.
C) It ignores the time to maturity.
D) It overstates the yield to maturity.
Answer: B
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.