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A company plans a commercial paper issue of $15 million. The company will have to pay fees totaling $150,000 up front to bring the issue

A company plans a commercial paper issue of $15 million. The company will have to pay fees totaling $150,000 up front to bring the issue to market. The issue will carry a 270-day maturity and will require interest based on an annual rate of 12%. What is the effective cost of the commercial paper issue?

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