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The quoted rates below are for 180-day money market instruments. Calculate the bond equivalent yield for each instrument, which offers investors the highest rate of

The quoted rates below are for 180-day money market instruments. Calculate the bond equivalent yield for each instrument, which offers investors the highest rate of return if the credit risk is the same?

mm security quoted basis assumed days/yr quoted rate
B discount rate 365 4.36%
C add-on rate 360 4.35%

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