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If a Firm Issues $5 Million of Commercial Paper with a Maturity

Question 148

Multiple Choice

If a firm issues $5 million of commercial paper with a maturity of three months at an annual interest rate of 8%, the proceeds of the issue are:

A) $4,900,000.
B) $4,629,630.
C) $4,901,961.
D) $4,600,000.

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