Question
A company issues $100 million of CP with a 90-day maturity at a discount of 5.4%. Fees include an annual dealer fee of 0.08% and
A company issues $100 million of CP with a 90-day maturity at a discount of 5.4%. Fees include an annual dealer fee of 0.08% and a backup line of credit fee of 0.30%.
The usable funds are?
What is the prorated dealer fee?
What is the prorated backup line of credit fee?
What is the annual interest rate for the issuer?
What is the nominal, or annual, yield to the investor?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
