A commercial paper's annualized discount rate is 4.85%. Its face value is $18,000,000, and it matures in

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A commercial paper's annualized discount rate is 4.85%. Its face value is $18,000,000, and it matures in 72 days. What would its price be? What would its price be if it matures in 125 days?

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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Question Posted: Oct 16, 2023 09:34 AM

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A commercial paper's annualized discount rate is 4.85%. Its face value is $18,000,000, and it matures in

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To calculate the price of a commercial paper you can use the following formula Price Face Value 1 Di...View the full answer

Financial Markets And Institutions

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