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17. Suppose an investor purchases 125 -day commercial paper with a par value of $1,000,000 for a price of $995,235, Calculate the discount yield. bond

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17. Suppose an investor purchases 125 -day commercial paper with a par value of $1,000,000 for a price of $995,235, Calculate the discount yield. bond equivalent yield, and the equivalent annual return on the commercial paper. (2.552) 18. A bank has iscued a six-month, $2 mililon negotiable CD with a 0.52 percent quoted annual interest rate ((CD ip )((LC.5:2) a. Calculate the bond equivilent yleld and the EAR on the CD. b. How much will the negotiable CD holder receive at maturity? c. Immediately after the CD is isued, the secondary market price on the $2 million CD falls to $1,998,750. Calculate the new secondary market quoted yield, the bond equivalent yield, and the EAR on the $2 million face value CD

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