(17) Amalgamated Appliance Inc. has planned a 3-month issue of commercial paper with a face value of $25,000,000. The paper is set to sell at 98.5% of face value. What is the 3-month interest rate? SOLUTION: 3-month interest rate = Interest due / Discounted amount = [$25,000,000 * (1 0.985)]l ($25,000,000 * 0.985) = 0.0152 or 1.52%. (NOTE: Annualized it would be (1.0152)"4 - 1 = 0.05094534 or about 5.0945%.) (18) What is commercial paper? Does it sell at a discount at face value plus interest? Extract Electrical Motors has issued $3,000,000 of commercial paper with a 30 day