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
Problem 1PS
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Question
A company is planning to sell its 90-day commercial paper to investors by offering an 8.4 percent
yield. If the face value of a three-month Treasury bill is GHS1000 which is also selling at GHS950,
the credit risk premium is estimated to be 0.6 percent, and there is a 0.4 percent tax adjustment,
then what is the liquidity premium on the commercial pape
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