Suppose an investor purchases 125-day commercial paper with a par value of $ 1,000,000 for a price

Question:

Suppose an investor purchases 125-day commercial paper with a of $ 1,000,000 for a price of $ 995,235. Calculate the discount yield, bond equivalent yield, and the equivalent annual return on the commercial paper. Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...