Suppose that a money market investor observes quoted rates on the following four 180- day money market

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Suppose that a money market investor observes quoted rates on the following four 180- day money market instruments:Money Market Instrument A B C D Quotation Basis Discount Rate Discount Rate Add-On Rate Add-On Rate Assumed


Calculate the bond equivalent yield for each instrument. Which instrument offers the investor the highest rate of return if the credit risks are the same?

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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