Calculate the dollar amount of the discount and the price

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Reference no: EM131347650

The company run by Bubbles, Ricky, and Julian is planning a $1 million issue of commercial paper to finance increased sales from easing the credit policy. The commercial paper note has a 60-day maturity and 6 percent discount yield. Calculate:

a. The dollar amount of the discount

b. The price

c. The effective annual interest rate for the issue

Reference no: EM131347650

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