Suppose you run a money market fund with a true nav of, Ask an Expert

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Suppose you run a money market fund with a true NAV of $0.9971. Suppose you just invested the entire fund in 60-day commercial paper, at a discount rate of 1%. How much would the discount rate have to change, from today to tomorrow, for the fund to break the buck (reach $0.9949 or lower)?

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Category:- Basic Finance
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