Part 1

Yield for 90 day period on a commercial paper = (FV – price)/price

Face value = $ 1000000

Price = $ 978000

Yield for 90 day period on a commercial paper (i)= ($ 1000000 - $ 978000) / $ 978000 = 2.25%

Effective Annual yield = [(1+i) 365/90 – 1] = 9.44%

Part 2

Yield for 90 day period on a commercial paper = (FV – price - brokerage)/price

Face value = $ 1000000

Price = $ 978000

Brokerage paid = $ 9612

Yield for 90 day period on a commercial paper (i)= ($ 1000000 - $ 978000) / $ 978000 = 1.27%

Effective Annual yield = [(1+i) 365/90 – 1] = 5.24%