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

30 days

35 days

310 days

325 days

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

Activity in their secondary market is high.

Firms are the most common investors in these securities.

They are typically used to finance firms major projects like the construction of new facilities.

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

Suppose Susan purchases a 45-day commercial paper with a par value of $1,000,000 for a price of $998,000. If Susan holds the commercial paper until maturity, and you assume a 360 day year, then the annualized yield is:

1.46%

1.58%

1.60%

1.65%