Wyatt Oil has an issue of commercial paper with a face value of $10,000,000 and a maturity of three months.Wyatt received $9,800,000 when it sold the paper.The effective annual rate for this financing is closest to:
A)5.6%.
B)6.6%.
C)7.2%.
D)8.4%.

Question

Quizplus · Accepted Answer

The Answer of Wyatt Oil has an issue of commercial paper with a face value of $10,000,000 and a maturity of three months.Wyatt received $9,800,000 when it sold the paper.The effective annual rate for this financing is closest to:
A)5.6%.
B)6.6%.
C)7.2%.
D)8.4%.

Wyatt Oil Has an Issue of Commercial Paper with a Face