Question
Your firm invested $2,506,900 in 230-day commercial paper today. At the end of the investment period...
Your firm invested $2,506,900 in 230-day commercial paper today. At the end of the investment period (in 230 days) the firm will receive $2,596,100.
a. What is the 230-day holding period rate of return on the investment? (Round your answer to 2 decimal places.)
HPR %
b. How many 230-day periods are there in one year? (Use a 365-day year. Round your answer to 4 decimal places.)
Number of periods
%
c. What is the annual percentage rate APR earned on the investment? (Round your answer to 2 decimal places.)
APR %
d. What is the effective annual rate (EAR)?
(Round your answer to 2 decimal places.)
EAR %
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