The Interest on a $20,000 Face Value, 90-Day Note That

question 98

Multiple Choice

The interest on a $20,000 face value, 90-day note that bears interest at 6 percent a year? (Assume 360 days in a year.)

• A)$12,000
• B)$3,000
• C)$1,200
• D)$300

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Definitions:

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Entities that have been approved to issue securities based on regulatory standards.

Prefiling

The process or activities that occur prior to officially submitting or filing a document with the relevant authorities.

Registration Statement

A set of documents, including a prospectus, filed with the SEC for a new securities issue.

Securities Exchange Act

A U.S. federal law regulating the trading of securities, including stocks and bonds, to protect investors against malpractice.