What is bond equivalent and discount yields on investment

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Reference no: EM131010894

Treasurer invest $20 million in excess short-term cash in money market investment. The prospectus quotes the instrument true yield of 3.15%, that is, the EAR for this investment is 3.15%. Treasurer wants to know the money market yield on investment to make it comparable to the T-bills and CDs she already purchased. If the term of the investment is 90 days, what is the bond equivalent and discount yields on this investment?

Reference no: EM131010894

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