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Question 7 1 pts The treasurer of a large corporation wants to invest $20 million in excess short-term cash in a particular m

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Answer #1

APR = [(1 + EAR)^(1/n) - 1 ] * n
= [(1 + 0.0515)^(76/365) - 1] * 365 / 76
= (1.01051115 - 1) * 365 / 76
= 5.0481%

Discount yield = (360 * 0.050481) / (365 + (76 * 0.050481))
= 18.17316 / 368.836556
= 4.93%

Discount yield = 4.93%

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