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Consider the following CP issuance. It has a yield of 2 . 9 5 % , 8 0 days to maturity and a face value
Consider the following CP issuance. It has a yield of days to maturity and a face value of $ mln
i If you buy the CP issuance today, what will be its price?
ii How much in interest will you earn if you hold the CP until maturity?
iii. Assume that rather than holding it to maturity, you sell the CP to another investor in days. At this time the CP yield is
At what price would it sell for?
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