Amalgamated Appliance Inc

question 76

Multiple Choice

Amalgamated Appliance Inc.has planned a 3-month issue of commercial paper with a face value of $25,000,000.The paper is set to sell at 98.5% of face value.What is the 3-month interest rate?

• A)3.04%
• B)6.08%
• C)2.17%
• D)1.52%