Answer: 6.4%.

The correct answer is **B (6.4%)**. The discount rate (DR) for a money market instrument is calculated as follows: \[ DR = \left( \frac{365}{\text{Days}} \right) \times \left( \frac{\text{Interest Earned}}{\text{Face Value}} \right) \] Substituting the given values: \[ DR = \left( \frac{365}{160} \right) \times \left( \frac{140,500}{5,000,000} \right) = 0.0641 \approx 6.4\% \] - **Option A (6.2%)** is incorrect because it mistakenly adds the interest earned to the redemption value in the denominator. - **Option C (6.6%)** is incorrect as it represents the add-on rate (AOR), which uses the present value in the denominator instead of the face value.

Author: LeetQuiz Editorial Team