If you were given the following data and asked which 90 day instument gives highest return how would you get this?
Quoted Rate Quotation Basis Day Convention
Instrument A 5.78 360 Discount
Instrument B 5.8 365 Discount
Instrument C 5.96 365 add on
The answer is C
It’s calculated the BEY’s of the above as: 5.946, 5.883 & 5.96 respectively but I dont understand how they have come to these figures.
Thanks!
Quoted Rate Quotation Basis Day Convention
Instrument A 5.78 360 Discount
Instrument B 5.8 365 Discount
Instrument C 5.96 365 add on
The answer is C
It’s calculated the BEY’s of the above as: 5.946, 5.883 & 5.96 respectively but I dont understand how they have come to these figures.
Thanks!