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10. A treasury manager is examining the potential to issue commercial paper based on the following assumptions: Face Value = $25,000,000 Discount Rate = 0.75%
10. A treasury manager is examining the potential to issue commercial paper based on the following assumptions: Face Value = $25,000,000 Discount Rate = 0.75% Dealer Fee = 0.25% Commitment Fee = 0.15% Days to Maturity = 30 Based on these assumptions, what is the effective cost of the commercial paper? A. 1.17% B. 0.76% C. 0.75% D. 1.58%
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
