Where in the book would I find the calc for commercial paper
what kind of calc? Its just a debt instrument (like a normal loan), with a maturity less than 270 days…
Yesterday someone said to know the calcs for these but i would like to look at a few examples For credit line: (Interest + Commitment Fee) / Loan Amount ------> Make sure interest and commitment fee are stated in terms of the borrowing period (monthly, quarterly, etc.) For all inclusive borrowing: Interest / (Loan Amount - Interest) For CP: (Interest + Dealer Commission + Backup Cost) / (Loan Amount - Interest) ----> Again, adjust the costs to the period used.
I saw this on the mock exam but I did not ever see this in schweser. Hopefully we won’t be tested on it that much.