Find the Annualized Cost of a Commercial Paper Issue the Has

question 38

Multiple Choice

Find the annualized cost of a commercial paper issue the has a $1,000,000 face value, matures in 180 days, has a placement fee of 1.5% and an interest charge of 8.5% over the 6 month period it is outstanding.

• A) 10%
• B) 11.1%
• C) 23.5%
• D) 24.5%

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Definitions:

Social Psychologist

A scientist who studies how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Dissonance Levels

The degree of conflict or inconsistency experienced by a person when holding two or more contradictory beliefs, ideas, or values.

Impression Formation

The mental process of developing opinions about other people.

Social Interaction

The process by which individuals act and react in relation to others, influencing and being influenced by the behaviors, feelings, and thoughts of one another.