You can buy commercial paper of a major U S corporation for $ 495,000 The paper has a face value of $ 500,000 and is 45 days from maturity Calculate the discount yield and bond equivalent yield on the commercial paper ...

The discount yield on the commercial paper is ...

You can buy commercial paper of a major U.S. corporation for $ 495,000. The paper has a

Question:

You can buy commercial paper of a major U.S. for $ 495,000. The paper has a of $ 500,000 and is 45 days from maturity. Calculate the discount yield and bond equivalent yield on the commercial paper.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...