A money market security has a face value of $10,000, a discount rate of 3%, and 182 days until maturity. Which of the following would increase the money market yield?

	a.	Increasing the discount rate from 3% to 4%
	b.	Decreasing the discount rate from 3% to 2%
	c.	Increasing the face value from $10,000 to $100,000
	d.	Decreasing the face value from $10,000 to $5,000

1 points

QUESTION 15

If a security has a bond equivalent yield of 2.75%, then what is the money market yield? Assume that the security matures in 30 days.

	a.	2.85%
	b.	2.71%
	c.	0.225%
	d.	0.222%

1 points

QUESTION 16

A municipal security offers a tax-exempt yield of 3%. What is the muni's taxable-equivalent yield? Assume a tax rate of 30%.

	a.	4.29%
	b.	2.96%
	c.	3.04%
	d.	3.67%