Securities is most liquid and has the least default risk

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1. A money market security with a face value of $10,000 sells at a discount of $48. If the security matures in 30 days, what is the discount rate?

a. 5.95%

b. 2.75%

c. 5.76%

d. 4.80%

2. Which of the following securities is most liquid and has the least default risk?

a. Treasury bill

b. commercial paper

c. 3-month CD

d. 1-month CD

Reference no: EM131339984

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