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Find the Annualized Cost of a Commercial Paper Issue the Has

Question 38

Multiple Choice

Find the annualized cost of a commercial paper issue the has a $1,000,000 face value, matures in 180 days, has a placement fee of 1.5% and an interest charge of 8.5% over the 6 month period it is outstanding.


A) 10%
B) 11.1%
C) 23.5%
D) 24.5%

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