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A company has issued commercial paper at 2.5% discount for 45 days. What is the...

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Finance

A company has issued commercial paper at 2.5% discount for 45 days. What is the price of the commercial paper and how much will be the effective rate of interest on this paper. Should this company issue this paper if the prime rate is 3.5%?image

A company has issued commercial paper at 2.5% discount for 45 days. What is the price of the commercial paper and how much will be the effective rate of interest on this paper. Should this company issue this paper if the prime rate is 3.5%

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