1. A money market security with a face value of $10,000 sells at a discount of $48. If the security matures in 30 days, what is the discount rate?
a. 5.95%
b. 2.75%
c. 5.76%
d. 4.80%
2. Which of the following securities is most liquid and has the least default risk?
a. Treasury bill
b. commercial paper
c. 3-month CD
d. 1-month CD