CAD needs to borrow $700,000 for 90 days to fund the purchase of new stock. To do
Fantastic news! We've Found the answer you've been seeking!
Question:
CAD needs to borrow $700,000 for 90 days to fund the purchase of new stock. To do this, the company decides to issue Promissory Notes (P-notes)
- In your own words, explain what a Promissory Note is including in your response:
- What discount securities are and why they are trade able;
- What a P-note is and how a P-note differs from a Bill of Exchange;
- What a ‘credit rating’ is and why this is important for Cad when issuing P-notes
- If the market yield at the time of CAD issuing the P-Note was 4.25% pa, what amount will CAD raise on the issue date?
Related Book For
Essentials of Marketing
ISBN: 978-0078028885
13th edition
Authors: William D. Perreault, Joseph P. Cannon
Posted Date: