Suppose that you are the manager of a bank, which needs to borrow in order to meet reserve

requirements. There are two $91-$day financial assets available to you. One is a commercial paper

quoted at $5\mathrm{.}2\%$ on a $360-$day basis. The other is fed funds quoted at $5\%$ on a $360-$day basis.

Which of the two financial assets will you choose and why? The quoted yields are conventional

for the type of money market security given $$ discount yield for the commercial paper and add$-$

on rate for the fed funds.