If a Firm Issues $5 Million of Commercial Paper with a Maturity

question 276

Multiple Choice

If a firm issues $5 million of commercial paper with a maturity of six months at an annual interest rate of 8%, the proceeds of the issue are:

• A)$5,000,000.
• B)$4,629,629.
• C)$4,800,000.
• D)$4,807,692.

---

Definitions:

Scratch List

A preliminary list of ideas, options, or tasks created for consideration or action, often subject to change.

Hierarchical Arrangement

An organizational structure where entities are ranked according to levels of importance or authority.

General Topics

Broad subject areas that encompass a wide range of subtopics within them.

Business Document

Any official paper that records transactions, plans, or other business activities, serving as a formal means of communication or evidence.