A Firm Issued Three-Month Commercial Paper with a $2,000,000 Face

question 32

Multiple Choice

A firm issued three-month commercial paper with a $2,000,000 face value and received $1,964,000.The effective annual rate that this firm is paying is closest to:

• A)8.0%.
• B)7.5%.
• C)1.8%.
• D)7.3%.

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Definitions:

Habit-Breaking Strategies

Techniques or methods employed to change or eliminate unwanted habits.

Entrepreneurial Mindset

A way of thinking that enables you to overcome challenges, be decisive, and accept responsibility for your outcomes. It is about seeing opportunities and setting yourself up to take advantage of them.

Opportunities

Potential avenues through which an organization or individual can grow, improve, or gain an advantage.

Mental Fixedness

A cognitive bias that limits a person to using an object or idea in only the way it is traditionally used.