Question 3 (14 marks / Money Market) Bank S will buy a $100,000 face value T-bill priced at $97,500, maturing in 181 days. Calculate the ask discount yield. (4 marks) Bank S will buy $1,000,000 of a 30-day commercial paper issue 8995,450. What is the yield on this commercial paper? (4 marks) Bank S agrees to buy T-bills from a securities dealer for $997,250, and promises to sell the securities back to the dealer in 4 days for $997,575. What is the yield on this reverse repo for the bank? (4 marks) According to the above yields, which financial instrument will Bank S prefer to invest? Also, rank the instruments from the lowest to highest yield. (2 marks)