A firm which has AA rating issues commercial paper with a face value of 5...
60.1K
Verified Solution
Link Copied!
Question
Finance
A firm which has AA rating issues commercial paper with a face value of 5 000 000 and a maturity of 80 days. The firm sells these commercial papers at the price of 4 820 000. The firm also pays a commision of 0.5% to the brokerage firm which assumes the responsibility of selling them in the financial markets. Given this; what is the annual cost of issuing commercial paper for this firm?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.