A commercial paper (CP) product with a par value of $1,000,000 has 120 days to maturity and is quoted at a price that would provide a discount vield of 5.00%. Note that the discount yield accrues interest using a 360-day year.

A. How much would an investor pay for the $1,000,000 par value CP?

B. What is the equivalent add-on money market vield for this product. In other words, what equivalent add-on market yield would be equivalent to the 5% discount yield in this case? (Assume a 365-day year for the add-on yield and provide your answer as a percentage to 3 decimal places.)

C. What is the effective annual rate for this product? (Provide answer in 3 decimal places).