Bacon Signs Inc. has planned a 3-month issue of commercial paper with a face value of $15,000,000. The paper is set to sell at 99.5% of face value. What is the 3-month interest rate?
A) 0.5000%
B) 0.5025%
C) 0.5035%
D) 0.5050%
Answer: B
Explanation: B) Rate = Interest due ÷ Discounted amount
= ($15,000,000 × (1 - 0.995))/ ($15,000,000 × 0.995) = 0.5025%.
You might also like to view...
Adam Inc uses a perpetual inventory system. Jan. 1 On hand, 10 units at $2 each $ 20 4 Sold 8 units for $10 each 80 22 Purchased 50 units at $4 each 200 26 Sold 48 units for $10 each 480 If Adam uses the LIFO method, how much is cost of goods sold for the month of January?
a. $208 b. $560 c. $204 d. $212
A ________ arises when the sender and receiver do not share a common language
A) psychological barrier B) semantic barrier C) language barrier D) physiological barrier E) mixed message
Which is a true statement about Aristotelian ethics?
A. make the right choices by following rules or principles B. seek pleasure C. it is easy to find the ethical middle ground D. build character through good habits
You may be entitled to receive the funds in your retirement plan under which of the following conditions?
I. retirement. II. disability. III. termination of employment. IV. financial hardship. A) only I B) only I and II C) only I, II, and IV D) I, II, III, or IV