13.

Money Market Prices (LO1, CFA2) The treasurer of a large corporation wants to invest $20 million in excess

short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of

3.15 percent; that is, the EAR for this investment is 3.15 percent. However, the treasurer wants to know the

money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If

the term of the instrument is 90 days, what are the bond equivalent and discount yields on this investment?

How to calculate properly and clearly?