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You buy a 30-day 4% CD with a face value of GBP 20,000,000.

You buy a 30-day 4% CD with a face value of GBP 20,000,000.00 at par when it is issued. You sell it in the secondary market after 10 days at 4.05%.

What is your holding period yield?

A.

4.05%

B.

3.891%

C.

3.838%

D.

1.946%

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