Question 1: Why do ratings agencies assign ratings to commercial paper?

Question 2: Based on what you know about repurchase agreements, would you expect them to have a lower or higher annualized yield than commercial paper? Why?

Question 3: Explain how the yield on a foreign money market security would be affected if the foreign currency denominating that security declined to a greater degree.

Question 4: You paid $98,000 for a $100,000 T-bill maturing in 120 days. If you hold it until maturity, what is the T-bill yield? What is the T-bill discount?