A Firm Issues Four-Month Commercial Paper with a $450,000 Face

question 11

Multiple Choice

A firm issues four-month commercial paper with a $450,000 face value and receives $442,000.What is the EAR the firm is paying for these funds?

• A)7.4%
• B)5.4%
• C)5.5%
• D)7.1%
• E)5.3%

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Definitions:

HRM Strategies

Tactics and methods employed to manage the workforce effectively, aligning HRM with the overall objectives of the organization.

Organizational Strategies

Plans or approaches developed by a business to achieve its goals and to operate in a competitive environment effectively.

Strategic Human Resources Management

An approach to managing human resources that supports long-term business goals and outcomes with a strategic framework.

HR Talent Management

Strategic approach to attracting, developing, retaining, and utilizing people with the required skills and aptitude to meet current and future business needs.