Treasurer invest 20 million in excess short-term cash in


Treasurer invest $20 million in excess short-term cash in money market investment. The prospectus quotes the instrument true yield of 3.15%, that is, the EAR for this investment is 3.15%. Treasurer wants to know the money market yield on investment to make it comparable to the T-bills and CDs she already purchased. If the term of the investment is 90 days, what is the bond equivalent and discount yields on this investment?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Treasurer invest 20 million in excess short-term cash in
Reference No:- TGS01357894

Expected delivery within 24 Hours