Posted by **KEVIN** on Wednesday, December 1, 2010 at 7:00am.

Carborundum Metals issues commercial paper with a face value of $1,000,000 and a maturity of three months. Carborundum receives net proceeds of $992,000 when it sells the paper. If the prime rate is 8% APR compounded quarterly, how much savings in interest did Carborundum realize by accessing the commercial paper market?

## Answer This Question

## Related Questions

- FINANCE - Carborundum Metals issues commercial paper with a face value of $1,000...
- Finance - A firm issues three-month commercial paper with $200,000 face value ...
- Finance - calculate the annualized rate of return on a 200 day commercial paper...
- Finance - Calculate the annualized rate of return on a 200-day commercial paper...
- accounting and finance - 5. What are the proceeds If a company issues 10 year ...
- Finance - Suppose Preun Inc. issues $200 million in 60 day maturity commercial ...
- finance - A General Power bond with a face value of $1,000 carries a coupon ...
- finance - 1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual ...
- finance - A manufacturing company issues a bond with a 100,000 face value and a ...
- finance - One yaer fom now, how much value creation is expected from the ...

More Related Questions