Show your work to get points. The assignment is to be turned in class.

Question 2

A) If you want to earn an annualized discount yield of 3.5%, what is the most you can pay for a 91- day Treasury bill that pays $15,000 at maturity?

B) The price of $8,000 face value commercial paper is $7,930. If the annualized discount yield is 4%, when will the paper mature? If the annualized bond equivalent yield % is 5%, find the commercial papers maturity