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)

1. In your own words, explain what a Promissory Note is including in your response:
   • what discount securities are and why they are tradeable;
   • 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
2. 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? Include the correct formula in your answer.