A Firm Issues One-Month Commercial Paper with a $500,000 Face

question 22

Multiple Choice

A firm issues one-month commercial paper with a $500,000 face value and receives $495,000.What is the EAR the firm is paying for these funds?

• A)12.8%
• B)1.01%
• C)12.12%
• D)12%
• E)13.12%

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Definitions:

Conditional Instruction

A programming command that executes a certain segment of code only if specific conditions are met.

Processor Scan

Processor Scan is the cyclic process by which a PLC reads inputs, executes its programmed logic, and updates outputs.

Jump-To-Label Instruction

A programming command used to redirect the execution flow to another part of the code identified by a label.

Processor Scan Time

The duration it takes for a PLC's processor to read all input states, execute the programmed logic, and update the outputs accordingly.