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1. The discount yield on a money market instrument _______ its actual yield.
A. understates B. equals C. overstates D. none of the above (Reasons as to why?)
2. How much would $20,000 due in 30 years be worth today if the discount rate were 5%?
A- $86,438.85
B- $571,428.57
C- $666.67
D- $4,627.55
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