(a) From the following information, calculate the Yield Rate of 'Commercial Paper'. Face Value ₹ 6,00,000 Sale Price ₹ 5,70,000 Maturity Period-120 days Brokerage and other Charges-4% Assume that Number of Days per annum

Calculation of Yield Rate of Commercial Paper: Face Value ₹ 6,00,000/- Brokerage and other Charges - 4%. Sale Price ₹ 5,70,000/- Brokerage = 5,70,000 X 0.04 = 22,800 Adjusted Sales Price = 5,70,000 + 22,800 = 5,92,800 Maturity Period = 120 days. Yield = 6,00,000 - 5,92,800 = 7,200 Yield Rate of Commercial Paper = (Face Value - Adjusted Sale Price) / Adjusted Sale Price X (360 / Maturity Period) X 100 = (6,00,000 - 5,92,800) / 5,92,800 X (360 / 120) X 100 Therefore, the Yield Rate of Commercial Paper is 3.644%