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3. Microsoft Corporation issues 12-month commercial paper with a par value equal to BDT 10000. The simple annual interest rate on the commercial paper is

3. Microsoft Corporation issues 12-month commercial paper with a par value equal to BDT 10000. The simple annual interest rate on the commercial paper is 12 percent, and the total transactions fee, which includes the cost of a backup line of credit, is 0.05 percent of the amount of the issue. What is its annual percentage rate and effective annual rate interpreting your answers? (4 marks)

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