Finance

posted by .

calculate the annualized rate of return on a 200 day commercial paper. this loan does not pay periodic interest; it is a discount security. the face value of the paper is 1,000,000 and current market value is 980,000

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    can you answer this? 1 . cost of trade credit abcdef corporation purchase merchandise for $200,000, 2/10, n/30 required:1 . annual cost of trade credit 2 . trade annual cost of trade credit item is chaned to 1/15, n/20 2 . cost of
  2. Finance

    A firm issues three-month commercial paper with $200,000 face value and receives $192,000. What is the EAR the firm is paying for these funds?
  3. FINANCE

    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 …
  4. Finance

    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 …
  5. Business finance

    In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $10,000 and the interest rate is 10 percent, the borrower “pays” 0.10 x $10,000 = $1,000 immediately, thereby receiving …
  6. Finance

    Suppose Preun Inc. issues $200 million in 60 day maturity commercial paper at a price of 99.35 par. (commercial paper is like a zero coupon bond. You buy it at a price of less than its par value and it pays the investor par value at …
  7. Business Finance

    A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.6%. The bonds have a current market value of $1,125 and will mature in 10 years. The firm's marginal rate is 34%.
  8. finance

    A bond that has a $ 1,000 par value (face value) and a contract or coupon interest rate of 10.5%. The bonds have a current market value of$ 1,124 and will mature in 10 years. The firm's marginal tax rate is 34%
  9. accounting and finance

    5. What are the proceeds If a company issues 10 year bonds with a face value of $10,000,000 in bonds with a coupon rate of 7% and a market rate of 7.5% paying interest payments semi annually. Will they sell at a premium or a discount?
  10. Finance

    Calculate the annualized rate of return on a 200-day commercial paper. This loan does not pay periodic interest; it is a discount security. The face value of the paper is $1 million and the current market value is $980,000.

More Similar Questions