Commercial Paper with a Face Value of $1,000,000 Issued at a Discount

Multiple Choice

Commercial Paper with a face value of $1,000,000 issued at a discount rate of 7.5% has a term of 360 days. At what price was it issued?

A) $944,736
B) $1,000,000
C) $925,000
D) $1,073,973
E) $931,122