Question
GeneralRobotics,Inc.,alarge and well-known company, is about to issue$5,000,000worth ofcommercialpaper. The paper hasamaturity ofsix months(182days),and the market iswillingto pay97%of parvaluefor it. It will sell the paper
GeneralRobotics,Inc.,alarge and well-known company, is about to issue$5,000,000worth ofcommercialpaper. The paper hasamaturity ofsix months(182days),and the market iswillingto pay97%of parvaluefor it. It will sell the paper withafaceor parvalueof$100,000.How manycommercialpapers will it sell? What is thecostof this borrowing toGeneralRobotics?
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
