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A company is investigating the purchase of a banker’s acceptance (BA). The $1,000,000 face value BA has 150 days to maturity and is quoted at 4.05 percent on a discount-basis yield. If the company’s marginal tax rate is 25 percent, then the money market yield on the BA is closest to:
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A. 3.13%.
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s! n, X8 Z% e; e1 v& x. {+ Y- wB. 4.12%.
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C. 4.18%.# f/ }. ]+ ]; h, G% K* s
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