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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:( i: v F# B; D5 b
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A. 3.13%.( o# @# m% B* g' h. ]
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B. 4.12%.1 ], U' f& T) Q+ a- I
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C. 4.18%.7 }# q2 i: W0 _ M! _/ v! s; }
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