The treasurer of a large corporation wants to invest $23 million in excess short-term cash in a particular money market inves prospectus quotes the instrument at a true yield of 3.42 percent; that is, the EAR for this investment is 3.42 percent. Howeve treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has alre bought. If the term of the instrument is 122 days, what are the bond equivalent and discount yields on this investment? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. Bond equivalent yield Discount viold. % 01
The treasurer of a large corporation wants to invest $23 million in excess short-term cash in a particular money market inves prospectus quotes the instrument at a true yield of 3.42 percent; that is, the EAR for this investment is 3.42 percent. Howeve treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has alre bought. If the term of the instrument is 122 days, what are the bond equivalent and discount yields on this investment? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. Bond equivalent yield Discount viold. % 01
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 8P
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