A firm is looking to raise $3,000,000 from the commercial paper (CP) market It receives the following quotes Maturity 90 days Discount Rate 0 65 Dealer Fee 0 125 Commitment Fee 0 15 Calculate the dollar discount Calculate the dollar dealer fee Calculate the commitment fee Calculate the usable fund raised What is the effective cost of issuing this CP What are other two alternatives for short term funding

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A firm is looking to raise $3,000,000 from the commercial paper (CP) market. It receives the following quotes: Maturity - 90-days; Discount Rate - 0.65%;

A firm is looking to raise $3,000,000 from the commercial paper (CP) market. It receives the following quotes:

Maturity - 90-days; Discount Rate - 0.65%; Dealer Fee - 0.125%; Commitment Fee - 0.15%

Calculate the dollar discount.
Calculate the dollar dealer fee.
Calculate the commitment fee;
Calculate the usable fund raised
What is the effective cost of issuing this CP?
What are other two alternatives for short term funding?

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