A.A parent company settles the collection account balances of its subsidiaries once a week. (That is, each week it transfers any balances in the accounts to a central account.) The cost of a wire...

once a week. (That is, each week it transfers any balances in the accounts to a central

account.) The cost of a wire transfer is $10. A check costs $.80. Cash transferred by wire is

available the same day, but the parent must wait three days for checks to clear. Cash can be

invested at 12% per year. How much money must be in a collection account before it pays to

use a wire transfer?

B.
In October 2008, six-month (182-day) Treasury bills were issued at a

discount of 1.4%. What was the annual yield?