Pacific Motors Inc. plans to issue $3,000,000 of commercial paper with a 6-month maturity at 98% of par value. What is the EAR?
A) 4.12%
B) 4.08%
C) 4.00%
D) 2.00%
Answer: A
Explanation: A) EAR = (1 + periodic rate)m - 1 = (1.0204)2 - 1 = 4.12%.
You might also like to view...
Trendz Inc is a leading brand of fashion clothing and accessories based in Houston. After gaining a strong foothold in the US, the company wants to foray into foreign markets
The management at Trendz knows that people residing in other countries are likely to have different tastes and preferences, so they may have to redesign some of their offerings. Which of the following strategies is Trendz using? A) market-penetration strategy B) outsourcing strategy C) geographic-expansion strategy D) product differentiation strategy E) ethnocentric strategy
A(n) ________ works for the manufacturer. This salesperson must have detailed and precise technical knowledge
Fill in the blanks with correct word