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150-day commercial paper can be bought at a 4.25% discount. What are the bond equivalent yield and the effective annual rate on the commercial paper?
150-day commercial paper can be bought at a 4.25% discount. What are the bond equivalent yield and the effective annual rate on the commercial paper? Why do these rates differ?
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Introduction To Finance Markets Investments And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
14th Edition
0470561076, 9780470561072
