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

$1$ day

$30$ days

$40$ days

$270$ days

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

They are typically used as an alternative to long$-$term bank loans.

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

Firms are the most common investors in these securities$.$

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

Suppose Lorenzo purchases a $20-$day commercial paper with a par value of $$10,000,000$ for a price of $$9,970,000.$ If Lorenzo holds the commercial paper until maturity, and you assume a $360$ day year, then the annualized yield is:

$4\mathrm{.}93\%$

$5\mathrm{.}37\%$

$5\mathrm{.}42\%$

$5\mathrm{.}47\%$