Asked by Jayleen Ailani on May 20, 2024
Verified
A $100,000, 90-day commercial paper certificate issued by Wells Fargo Financial Canada was sold on its issue date for $99,250. What simple interest rate of return will it yield to the buyer?
Simple Interest
Interest earned or paid on the original principal amount alone, without compounding.
Buyer
A person or entity that purchases goods or services.
Commercial Paper
A short-term unsecured debt instrument issued by corporations, typically for financing accounts receivable and inventories.
- Analyze the profitability and market price of commercial paper and promissory notes.
- Familiarize yourself with the use of simple interest in the context of financial instruments.
Verified Answer
AP
Learning Objectives
- Analyze the profitability and market price of commercial paper and promissory notes.
- Familiarize yourself with the use of simple interest in the context of financial instruments.