Wyatt Oil Has an Issue of Commercial Paper with a Face

question 31

Multiple Choice

Wyatt Oil has an issue of commercial paper with a face value of $10,000,000 and a maturity of three months.Wyatt received $9,800,000 when it sold the paper.The effective annual rate for this financing is closest to:

• A)5.6%.
• B)6.6%.
• C)7.2%.
• D)8.4%.

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