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 discounted selling price of the firm's commercial paper?
A) $3,000,000
B) $2,940,000
C) $2,700,000
D) $2,666,667
Answer: B
Explanation: B) Discounted selling price = Face Value × % of par = $3,000,000 × 0.98 = $2,940,000.
You might also like to view...
Folding arms, crossing hands, and crossing legs communicate
A. Liking B. Boredom C. Happiness D. Immediacy E. Defensiveness
Brady West signed a lease with Harold Gomes for a store. The lease contained a term that the tenant would make all repairs
On the first of the month Gomes noticed a leak and gave written notice to Brady in these terms: "You are hereby notified that you are in breach of the lease." One month went by and Brady had not repaired the roof. Gomes wants to evict her. Which of the following is TRUE? A) The landlord can evict Brady because she has had reasonable notice of the breach of the lease. B) The landlord can evict Brady because she specifically agreed in the lease to repair the damage and has not done so. C) The landlord cannot evict Brady because the notice of the breach of the lease was not specific enough. D) The landlord cannot evict Brady because she has not been given a reasonable time to remedy the breach. E) both A and B