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An investor purchases commercial paper which matures in 160 days and has a face value of $1 million. The price at purchase is $991,740.03. Thirty
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An investor purchases commercial paper which matures in 160 days and has a face value of $1 million. The price at purchase is $991,740.03. Thirty days later, the investor sells the commercial paper for $994,685.93.
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(2 points) Calculate the compound, annualized yield on the security at the time of purchase.
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(2 points) Calculate the compound, annualized yield on the security at the time of sale.
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(2 points) Calculate the investors compound, annualized realized return.
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(5 points) Briefly describe the relationship between the three rates.
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