Question
Y Trading Co. plans to sell $100,000,000 in 180-day maturity paper, which it expects to pay discounted interest at an annual rate of 12% p.a..
Y Trading Co. plans to sell $100,000,000 in 180-day maturity paper, which it expects to pay discounted interest at an annual rate of 12% p.a.. Due to this commercial paper, Y Trading Co. expects to incur P100,000,000 in dealer placement fees and issuance costs.
Required:
The Effective Cost of Y Trading Co.'s credit.
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
