5. Suppose that a money market investor observes quoted rates on the following 180-day money...
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5. Suppose that a money market investor observes quoted rates on the following 180-day money market instruments: (20 points) Quoted Rate Money Market Instrument A Quotation Number of Basis days in the Year Discount Rate 360 Discount Rate 365 4.33% B 4.36% Calculate the bond price for each instrument. with nominal value of 100$. Which instrument offers the investor the highest rate of return if the credit risk is the same
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