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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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