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Danial company plans to sell RM400,000 in 90-days maturity paper on which the expected discounted interest to be paid 10 percent per annum. The dealer placement fee is RM3,000 per paper, and the par value of these commercial papers is RM40,000 each. Calculate the cost of issuing commercial paper. Answer 44.44 percent 4,44 percent 10.19 percent 11.11 percent

Danial company plans to sell RM400,000 in 90-days maturity paper on which the expected discounted interest to be paid 10 percent per annum. The dealer placement fee is RM3,000 per paper, and the par value of these commercial papers is RM40,000 each. Calculate the cost of issuing commercial paper. Answer 44.44 percent 4,44 percent 10.19 percent 11.11 percent

Essentials Of Investments
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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Danial company plans to sell RM400,000 in 90-days maturity paper on which the expected discounted interest to be paid 10 percent per annum. The dealer placement fee is RM3,000 per paper, and the par value of these commercial papers is RM40,000 each. Calculate the cost of issuing commercial paper. Answer 44.44 percent 4.44 percent 10.19 percent 11.11 percent
Transcribed Image Text:Danial company plans to sell RM400,000 in 90-days maturity paper on which the expected discounted interest to be paid 10 percent per annum. The dealer placement fee is RM3,000 per paper, and the par value of these commercial papers is RM40,000 each. Calculate the cost of issuing commercial paper. Answer 44.44 percent 4.44 percent 10.19 percent 11.11 percent
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