What is the annual percentage yield (APY) of a simple discount note for $7,000 at a bank discount rate of 6%, for 3 months?

To find the annual percentage yield (APY) of a simple discount note, you need to follow a few steps.

Step 1: Calculate the discount on the note.
Discount = Principal * Bank discount rate * Time
Discount = $7,000 * 6% * (3/12) years
Discount = $105

Step 2: Find the net proceeds.
Net Proceeds = Principal - Discount
Net Proceeds = $7,000 - $105
Net Proceeds = $6,895

Step 3: Calculate the interest for one year.
Interest = (Net Proceeds / Principal) - 1
Interest = ($6,895 / $7,000) - 1
Interest = 0.985 - 1
Interest = -0.015

Step 4: Calculate the APY.
APY = Interest * (365 / Time)
APY = -0.015 * (365 / 0.25)
APY = -0.015 * 1,460
APY = -21.90%

In this case, the APY of the simple discount note would be -21.90%. Note that APY can be negative when the interest rate is lower than the bank discount rate.