We mostly do asset management with very little puirchasing of treasuries or CP, can someone please help me understand/calculate commercial paper? Purchase = $25,000,000 Settlement Date = 10/08/2008 Maturity = 12/19/2008 Price = 98.78 Discount = 6.1 Yield = 6.175339 Wants to sell in open market (If possible). Trying to price settlement 10/14/2008, 6.2, 6.3, 6.4… Anyone, please?
What’s the problem here? It’s a discount instrument just like a T-bill. The “discount” above is a discount yield = 4*(100-98.78). The yield is a BEY or similar.
get bloomberg