Union Pacific is considering issuing commercial paper and would like to know the yield it should offer. The corporation believes that a default risk premium of 0.2 percent, a liquidity premium of 0.1 percent and a tax adjustment of 0.3 percent are necessary to sell its commercial paper to investors. Additionally, annualized Treasury bill rates are 6.2 percent. 

Based on this information, Union Pacific should offer _______ percent on its commercial paper

Answer rating: 100% (QA)

To calculate the yield Union Pacific should offer on its commercial paper you would su... View the full answer