Find the Annualized Cost of a Commercial Paper Issue the Has

question 124

Multiple Choice

Find the annualized cost of a commercial paper issue the has a $1,000,000 face value, matures in 180 days, has a placement fee of 1.5% and an interest charge of 8.5% over the 6 month period it is outstanding.

• A)10%
• B)11.1%
• C)23.5%
• D)none of the above

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Definitions:

Theoretically Diverse

Referring to an approach or perspective that integrates and acknowledges a variety of theoretical frameworks or explanations.

Theoretically Consistent

Refers to a concept, idea, or hypothesis that aligns with the principles and assumptions of a particular theory or framework.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Behaviour

The actions or reactions of an individual or system in response to external or internal stimuli.