What effective annual rate will the firm pay

Assignment Help Financial Management

Reference no: EM131920287

Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 105-day commercial paper with a face value of $1.5 million. The firm has received initial proceeds of $1,476,040. If a brokerage fee of $13,721 was paid from the initial proceeds to an investment banker for selling the issue, what effective annual rate will the firm pay, assuming that the paper is rolled over every 105 days throughout the year? (assume a 365-day year)

Reference no: EM131920287

Questions Cloud

Plot the stock price and market index series in levels : Testing for Capital Market Efficiency and Financial Market Integration in North America. Plot the stock price and market index series in levels.

Find coupon amounts and draw cashflow timeline : Find the coupon amounts and draw the cashflow timeline. Compute the? bond's price discounting each cashflow one by one from Step 1 at bond's yield-to-maturity

What did you learn from this video -school a to z : What did you learn from this video that will help you in communicating with parents when you become a school principal?

Discuss the five operational review attributes : This week we will discuss the development of findings from an operational audit. Before we start, let's discuss the five operational review attributes.

What effective annual rate will the firm pay : what effective annual rate will the firm pay, assuming that the paper is rolled over every 105 days throughout the year?

Compute dow basic and diluted earnings per share : On February 28, 2013, Dow sold 60,000 common shares. Compute Dow's basic and diluted earnings per share for the year ended December 31, 2013

How does your school measure up : Since part of this program is looking at the crisis management plan in your own schools, this resource will be beneficial to you in looking at your own plan.

What were the digby corporation total liabilities : What were the Digby Corporation's total liabilities?

How does a us company conduct itself : This should be an interesting discussion as we explore corruption in the global economy. How does a U.S. company conduct itself when operating in foreign.

User Account

All Pages