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Which of the following best describes the discount rate for money market instruments?A. The interest earned on an instrument, derived from the difference between the price and face value, expressed as a percentage of the face value and multiplied by the periodicity of the annual rate.B. The interest earned on an instrument, derived from the difference between the price and face value, expressed as a percentage of the purchase price and compounded semiannually.C. The interest earned on an instrument, derived from the coupon payments made during its term, expressed as a percentage of the face value and compounded annually.D. The interest earned on an instrument, derived from the difference between the price and face value, expressed as a percentage of the face value and compounded quarterly.
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