What is the dollar discount on this instrument calculate


A discounted money market security with a 3-month maturity (i.e., 91 days) and a $10,000 face value was just issued at a 2% discount rate.

a. What is the dollar discount on this instrument?

b. Calculate the instrument’s money market yield.

c. Calculate the instrument’s bond-equivalent yield

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Financial Management: What is the dollar discount on this instrument calculate
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