An investor purchased 90-day commercial paper with a par value of $1,000,000 for a price of $980,500. find the discount yield, bond equivalent yield and the effective annual rate for this commercial paper. If the overnight Fed funds rate is quoted as 2.75% find the bond equivalent yield and the effective annual rate. A Municipal bond you are considering as an investment currently pays a yield of 7.25%, calculate the tax equivalent yield if your tax rate is: a) 12%. b) 20% Bites company issued a 7 years bond with a par value of $1,000 and a coupon rate of 9%. find the value of this bond given that the required rate of return is 8%, and the interest on bond (coupon) is paid semi annually