Question
A) The face value of a money market instrument is $200,000 and it matures in 51 days. How much is the annualized yield on this
A) The face value of a money market instrument is $200,000 and it matures in 51 days. How much is the annualized yield on this instrument if it price is $198,958? How much is its annualized discount rate? (6 marks)
B) What is the most you can pay for a 91-day Treasury-Bill that pays $6,500 at maturity, if you want to earn an annualized yield of 5.2%? (4 marks)
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
