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a 6) Asian Motors Inc. plans to issue $3,000,000 of commercial paper with a 6-month maturity at 98% of par value. What is the EAR?

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a 6) Asian Motors Inc. plans to issue $3,000,000 of commercial paper with a 6-month maturity at 98% of par value. What is the EAR? A) 4.12% B) 4.08% APRF C) 4.00% D) 2.00% Answer: A Comment: EAR = (1 + periodic rate)m. 1 = (1.0204)2. 1 = 4.12%. Diff: 2 Topic: 15.6 Other Borrowing Options for a Mature Business AACSB: 3 Analytic Skills

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