A Firm Has Directly Placed an Issue of Commercial Paper

question 156

Multiple Choice

A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue sold for $980,000 and has an annual interest rate of 12.24 percent. The value of the commercial paper at maturity is ________ (assume 360 days in a year) .

• A) $19,992
• B) $980,000
• C) $1,000,000
• D) $960,008

---

Definitions:

Senate

The upper chamber of the legislature in many countries, including the United States, where it forms one of the two houses of Congress.

Presidential Veto

The power of the President to reject a bill passed by Congress, preventing it from becoming law unless overridden.

Emergency Declaration

An emergency declaration is a formal announcement by a government authority that enables temporary measures to manage a significant threat or disaster, often unlocking additional resources and powers.

Foreign Threats

Challenges or dangers originating from outside a country's borders that can impact national security or interests.