What Is the Price of a Commercial Paper with a Face

question 77

Multiple Choice

What is the price of a commercial paper with a face value of $100 000 and 120 days until maturity that is issued at a yield of 5% p.a.?

• A)$84 251.50
• B)$91 843.10
• C)$97 685.46
• D)$98 382.75

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Definitions:

Government Policy

Strategies or actions taken by a government to influence its economy or society, which may include laws, regulations, decisions, and actions.

Private Saving

The portion of individuals' or households' income that is not consumed and is instead saved or invested.

Public Saving

The difference between government tax revenues and government spending. If positive, it indicates a budget surplus; if negative, a deficit.

Bonds

Bonds are fixed-income securities that represent loans made by an investor to a borrower, typically corporate or governmental, which must be repaid with interest.