Question: Daewoo Motors has been told it could issue $150 million face value in Euro-CP at a discount rate of 8.9% based on a 360-day year.

Daewoo Motors has been told it could issue $150 million face value in Euro-CP at a discount rate of 8.9% based on a 360-day year.

a. If the maturity of Daewoo's Euro-CP is 91 days, what will be its proceeds from the issue?

b. What will be its annual yield on this issue?


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