1. A firm plans to issue 30 day commercial paper for $9,900,000. Par value is $1,000,000. What is the firms cost of borrowing?
A) 12.12percent
B) 11.11percent
C) 13 percent
D) 14.08 percent
E) 15.25 percent
2. A repurchase agreement calls for an investor to buy securities for $4,925,000 and sell them back in 60 days for $5,000,000. what is the yield?
A) 9.43 percent
B) 9.28 percent
C) 9.14 percent
D) 9 percent