1. 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.

   1. (2 points) Calculate the compound, annualized yield on the security at the time of purchase.

   2. (2 points) Calculate the compound, annualized yield on the security at the time of sale.

   3. (2 points) Calculate the investors compound, annualized realized return.

   4. (5 points) Briefly describe the relationship between the three rates.