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8. Money market instruments: Eurodollar securities Which of the following are typical Euronote maturity lengths? Check all that apply. 1 month 3 months 3 years

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8. Money market instruments: Eurodollar securities Which of the following are typical Euronote maturity lengths? Check all that apply. 1 month 3 months 3 years 6 months Which of the following are characteristics of Eurodollar securities? Check all that apply. Eurodollar CD denominations are typically $1 million or more. Euronote maturities are normally between 1 and 20 years. A secondary market for Euro-commercial paper exists. Only governments and large corporations participate in the Eurodollar market. Suppose Eileen (a U.S. investor) purchases a 25-day Euro-commercial paper with a par value of 1,000,000 Indian rupees for a price of 997,000 Indian rupees. If the rupee is worth $0.015, the spot rate is anticipated to be $0.015900 per rupee at the end of maturity, and Eileen holds the Euro- commercial paper until then, assuming a 360 day year, the effective yield is: O 9.64% 10.48% O 10.59% 0 10.80%

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