1. If Sterling Corporation purchases a $5 million bank CD that matures in 90 days and promises an interest return of 6.25 percent, how much in total will Sterlingreceive back when this CD matures?
2. Commercial paper was purchased in the secondary market 30 days from maturity at a bank discount yield of 9 percent. Ten days later, it was sold to a dealer at an 8percent discount rate. What was the investor’s holding-period yield?