MSC Ltd would like to issue Commercial Paper (CP). Calculate the effective interest yield of the commercial paper (CP) from the following data : Particulars Amount in ₹ Face Value 10,00,000 Sale Price 9,91,000 Maturity P

Calculation of effective interest yield of Commercial Paper (CP) of MSC Ltd. Particulars Amount in ₹ Face Value 10,00,000 Sale Price 9,91,000 Maturity Period 120 days Brokerage and other Charges 2.50% Brokerage Value (2.50% of ₹10,00,000) 25,000 Net Sale Price (₹9,91,000 - ₹25,000) 9,66,000 Yield = [(Face Value - Sale Price)/Sale Price] * (360/Maturity Period) * 100 = [(₹10,00,000 - ₹9,66,000) / ₹9,66,000)] * (360/120) * 100 = 10.559%