Alice Purchased a $100,000 180-Day Acme Corporation Commercial Paper When

Multiple Choice

Alice purchased a $100,000 180-day Acme Corporation Commercial Paper when it was first issued at a yield simple interest rate of 7.45%. 50 days later she sold it to Betty at a rate that would provide Betty with a return of 8.45% if Betty held it to maturity. What annual simple rate did Alice actually realize over the period that she held the Commercial Paper?

A) 6.45%
B) 4.71%
C) 7.45%
D) 6.98%
E) 7.95%