Question: 1. Why do DRY and the IRY result in different values? Explain why this difference, even though seemingly small, can be very important? 2. How

1. Why do DRY and the IRY result in different values? Explain why this difference, even though seemingly small, can be very important?

2. How might a firm use the issuance of commercial paper as a way to deal with its seasonal fluctuations in sales?

3. Assume you are going to buy a 90-day Treasury Bill with a face value of $1,000 for a price of $944. Calculate the DRY, or discount rate yield. Also, calculate the IRY, or investment return yield.

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