What is the effective annual interest return on the security

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Problem (a) Suppose you can invest in a money market security that matures in 150 days and offers a 6% nominal annual interest rate (i.e., bond equivalent yield). What is the effective annual interest return on this security?

Problem (b) You submit a noncompetitive bid in Dec. 2020 to purchase a 28-day RM1,000 Treasury bill, and you find that you are buying the bond for RM999.88722. What are the discount rate % and the investment rate %?

Problem (c) "A country is always worse of when its currency is weak (falls in value)". Is this statement true, false or uncertain? Explain your answer?

Reference no: EM132791657

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