单选题 A 3-month loan has a holding period yield of 1.5 percent. What is the annual yield of this loan on a bond-equivalent basis?

A、

A. 6.65%.
B、

B. 5.06%.
C、

C. 6.05%.

【正确答案】 C

【答案解析】
First, the 3-month yield must be converted to a semiannual yield. The result is then doubled to obtain the bond-equivalent yield.
Semiannual yield=1.015²-1=0.030225.
The bond-equivalent yield=2×0.030225=0.06045.