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A corporate treasurer is looking to invest about $18 million for 60 days. Commercial paper rates are a 2.60% discount and CD rates are 2.61%.

A corporate treasurer is looking to invest about $18 million for 60 days. Commercial paper rates are a 2.60% discount and CD rates are 2.61%. Comparing the bond equivalent yields over a 365-day year, which is the best alternative? What is the opportunity cost of leaving the funds idle?

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