A commercial paper note with 1 million par value and


1. What is the difference in basis points between the discount rate of return (DR) and the investment rate of return (IR) on a $10 million commercial paper note purchased at a price of $9.85 million and scheduled to mature in 25 days?

2. A commercial paper note with $1 million par value and maturing in 60 days has an expected discount return (DR) at maturity of 6 percent. What was its purchase price? What is this note's expected coupon-equivalent (investment return) yield (IR)?

 

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Finance Basics: A commercial paper note with 1 million par value and
Reference No:- TGS0639976

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