1.
=(1000000/985000)^2-1=3.069%
2.
=(1000000/973710)^2-1=5.473%
3.
=985000*(1+8%/4)^2-1000000=24794
4.
=973710*(1+8%/4)^2-1000000=13047.884
t The Treadwater Bank wants to raise $1,000,000 using three-month commercial for Treadwater? Magna Corporation has an issue of commercial paper with a face value of $1,000,000 and a maturity of s...
Q. 05: The Treadwater Bank wants to raise $1.1 million using three-month commercial paper. The net proceeds to the bank will be $1,084,600. What is the effective annual rate of this financing for Treadwater? Solution: Q. 06: The Needy Corporation borrowed $14,000 from Bank Ease. According to the terms of the loan, Needy must pay the bank $488 in interest every three months for the three-year life of the loan, with the principal to be repaid at the maturity of...
Carborundum Metals issues commercial paper with a face value of $1,000,000 and a maturity of three months. Carborundum receives net proceeds of $992,000 when it sells the paper. If the prime rate is 8% APR compounded quarterly, how much savings in interest did Carborundum realize by accessing the commercial paper market? O A. $8,000 OB. $9,800 OC. $11,840 OD. $10,200
Problem 8 Intro Cumulus Corp. has issued commercial paper with a face value of $1,000,000 and a maturity of 5 months. The net proceeds of the issue were $983,791 Attempt 1/5 for 10 pts Part 1 What is the effective annual rate of the commercial paper? 3+ decimals Submit
The Signet Corporation has issued four-month commercial paper with a $5.7 million face value. The firm netted $5.571.806 on the sale. What effective annual rate (EAR) is Signet paying for these funds? The effective annual rate is % (Round to two decimal places.)
The Signet Corporation has issued four-month commercial paper with a 5.6 million face value. The firm netted $5,447,008 on the sale. What effective annual rate (EAR) is Signet paying for these funds?