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Consider an issue of 80,000,000, 6.4% 90 day commercial paper. Assume a day count of 30/360....

Consider an issue of 80,000,000, 6.4% 90 day commercial paper. Assume a day count of 30/360.

How much money would the issuer receive from the commercial paper issue if they are in the United States?

Solutions

Expert Solution

The issuer will receive = 80,000,000 * 6.4% * (90 / 360)
= 80,000,000 * 6.4% * 0.25
= 1,280,000

The issuer will receive 1,280,000

jeff jeffy answered 2 years ago
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