Question: Question 4 (15 marks) a. Briefly discuss the functions served by the money markets. Name two examples of money market securities commonly owned or traded

Question 4 (15 marks) a. Briefly discuss the functions served by the money markets. Name two examples of money market securities commonly owned or traded by commercial banks. 6 marks b. A Treasury bill (T-bill) that is 182-days from maturity is selling for $940. The T-bill has a face value of $1,000 Calculate the annualized yield' and 'discount yield' of the T-bill. Show all the calculations. 6 marks c. Al Electronic Group has issued a commercial paper, with a face value of $12,000,000 at an annualized yield of 8 %, which is 275-days from maturity. Calculate the price paid by the investors for the commercial paper issued by AI Electronic Group. Show all the calculations. 3 marks

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