Which of the following are typical commercial paper maturities? Check all that apply.

$1$ day

$20$ days

$270$ days

$345$ days

Which of the following are characteristics of commercial paper? Check all that apply.

Their denominations are typically in multiples of $$1$ million.

Activity in their secondary market is low.

They are typically used to finance a firm's investment in inventory and accounts receivable.

Common investors in these securities are households, firms, and financial institutions.

Suppose Tim purchases a $20-$day commercial paper with a par value of $$1,000,000$ for a price of $$996,000.$ If Tim holds the commercial paper unti maturity, and you assume a $360$ day year, then the annualized yield is: