A company issues $25,000,000 of commercial paper with a 182-day maturity at a discount rate of...
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A company issues $25,000,000 of commercial paper with a 182-day maturity at a discount rate of 4.0%. The paper is sold through a dealer for an annual charge of .12%. There is also a backup line of credit that costs .25% annum. What is the effective annual cost of issuing the commercial paper? A company issues $25,000,000 of commercial paper with a 182-day maturity at a discount rate of 4.0%. The paper is sold through a dealer for an annual charge of .12%. There is also a backup line of credit that costs .25% annum. What is the effective annual cost of issuing the commercial paper?
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