Author Question: Marley Financial plans to sell 50,000,000 of 120-day commercial paper, on which it expects to pay ... (Read 72 times)

craiczarry · **on:** Jul 10, 2018

Marley Financial plans to sell 50,000,000 of 120-day commercial paper, on which it expects to pay
discounted interest at a rate of 5 per year. Dealer fees are expected to be 30,000. The effective
cost of credit to Marley Financial is

A) 6.22. B) 5.64. C) 7.53. D) 5.27.

Question 2

The Fisher Effect involves which of the items below?

A) Nominal rate, the real rate, and inflation
B) Nominal rate and the real rate only
C) Nominal rate and inflation only
D) Nominal rate, the bond rate, and inflation