Business, 12.05.2021 01:40 tylerkitchen44

A portfolio manager buys $1 million of U. S. Treasury bills maturing in 90 days at a price of $990,390 and discount rate of 3.8%. The portfolio also includes the following investments: Bank commercial paper maturing in 90 days with a bond equivalent yield of 4.34% and a market value of $100,000. Bank certificates of deposit maturing in six months with a bond equivalent yield of 4.84% and a market value of $200,000. The bond-equivalent yield of a comparable benchmark portfolio is 4.0%. Including the Treasury bill purchase, the manager's portfolio is:

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A portfolio manager buys $1 million of U. S. Treasury bills maturing in 90 days at a price of $990,3...

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