What is the price of a commercial paper with a face value of $100 000 and 120 days until maturity that is issued at a yield of 5% p.a.?
A)$84 251.50
B)$91 843.10
C)$97 685.46
D)$98 382.75

Question

Quizplus · Accepted Answer

The price of a commercial paper is calculated using the formula: Price = Face Value / (1 + (Yield * (Days to Maturity/360))). Substituting the given values: Price = $100,000 / (1 + (0.05 * (120/360))) = $98,382.75.

What Is the Price of a Commercial Paper with a Face