A firm issued $2 million worth of commercial paper that has a 90-day maturity and sells for $1,900,000. The annual interest rate on the issue of commercial paper is
A. 5 percent.
B. 10 percent.
C. 17 percent.
D. 21 percent.
Answer:D
A firm issued $2 million worth of commercial paper that has a 90-day maturity and sells for $1,900,000. The annual interest rate on the issue of commercial paper is
A. 5 percent. B. 10 percent. C. 17 percent. D. 21 percent.