1200:12:14Life.com issued $20 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 11% discountrate.1. Calculate the discount on the commercial paper.2. Calculate the effective interest rate on the commercial paper.Complete this question by entering your answers in the tabs below.Discount Effective RateCalculate the effective interest rate on the commercial paper.Note: Do not round intermediate calculation. Enter your answers in whole dollars. Round "Effective Interest Rate" to 1 decimal place. (i.e.,0.123 should be entered as 12.3).DiscountProceeds=$ 1,650,000 =9-month rate0%%

Commercial paper issued amount = $20,000,000Discount rate = 11%Time period = 9 months

Answered: 00:12:14 Life.com issued $20 million of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Note Receivable Prefix Supply Company received a 120-day, 8% note for $450,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $ Feedback Check My Work The due date is the date the note is to be paid. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank. Aug. 7 Feedback Check My Work At the due date, the company records the receipt of payment on the note.
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