What the value of the commercial paper at maturity is

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Problem 1: Collaboration Inc. has directly placed an issue of commercial paper that has a maturity of 60 days at Php1.2 million. The interest was based on the risk free rate of 7% and a debt margin of 6%. The withholding tax rate is 20%. The underlying asset is Php3 million. The value of the commercial paper at maturity is

a. 980 000
b. 999 992
c. 1 200 000
d. 1 226 000

Reference no: EM132814826

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