The price of $8,000 face value commercial paper is $7,930. If the annualized discount rate is 4%, when will the paper mature? If the annualized investment rate % is 4%, when will the paper mature?
(Note – For discount rate, we use 360 days in a year while for investment rate , 365 days is used)
Solution: Let N = when the paper matures
Discount rate:
