Short-term cash in particular money market investment

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The treasurer of a large corporation wants to invest $20 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 6.21 percent; that is, the EAR for this investment is 6.21 percent. However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-bills and CDs she has already bought. If the term of the instrument is 91 days, what is the discount yield (in percent) on this investment?

Reference no: EM131977544

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