1. liquid assets tend to be

Heterogeneous with high information costs

Homogeneous with low information costs

Homogeneous with high information costs

Heterogeneous with low information costs

2. An investor buys commercial paper with a 60-day maturity for $985,000. Par value is $1,000,000, and the investor holds it to maturity. What is the annualized yield?

A) 8.62 percent

B) 8.78 percent

C) 8.90 percent

D) 9.14 percent

E) 9 percent