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    Exam 20: Short-Term Financial Planning
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    A Firm Issues Two-Month Commercial Paper with $1,000,000 Face Value
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A Firm Issues Two-Month Commercial Paper with $1,000,000 Face Value

Question 74

Question 74

Multiple Choice

A firm issues two-month commercial paper with $1,000,000 face value and receives $985,000. What is the EAR the firm is paying for these funds?


A) 1.52%
B) 7.50%
C) 9.49%
D) 15.00%

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