A Firm Issues Two-Month Commercial Paper with a $200,000 Face

question 14

Multiple Choice

A firm issues two-month commercial paper with a $200,000 face value and receives $196,000.What is the EAR the firm is paying for these funds?

• A)12.5%
• B)12.6%
• C)12.9%
• D)12%
• E)12.2%

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Definitions:

Workforce Diversity

The inclusion of a wide range of individuals in an organization, encompassing differences in race, gender, age, cultural background, etc., to enhance creativity and decision-making.

Disabilities

Disabilities are physical or mental conditions that limit a person's movements, senses, or activities.

Competitive Advantage

A unique attribute or position that allows an organization, country, or individual to outperform its competitors, leading to greater sales, margins, or customer loyalty.

Diverse Workforce

A workforce composed of individuals from a variety of backgrounds, including different races, ethnicities, genders, ages, religions, abilities, and sexual orientations.