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Question 4 You decide to invest in $4,000,000.00 of Commercial Paper due in 247 days and quoted at 7.125%. You finance the investment with a

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Question 4 You decide to invest in $4,000,000.00 of Commercial Paper due in 247 days and quoted at 7.125%. You finance the investment with a repo at 7.250% over the same period. Your initial investment in the Commercial Paper is Type: Calculated Points Awarded: 2/5 Your Answer(s): 3804458.33 on which you earn interest of S 195541.67 You pay interest of $ 198972.22 thereby making a profit of $ -3430.55 Was this a smart investment? (Yes/No) No

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