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A company plans to issue commercial paper to finance its short-term needs. The firm plans to issue $2,500,000 in 270-day maturity notes. The paper will
A company plans to issue commercial paper to finance its short-term needs. The firm plans to issue $2,500,000 in 270-day maturity notes. The paper will carry 8.75 percent rate with discounted interest and will cost this company $8,500 (paid in advance) to issue. What is the APR for the issue?
A.)9.89%
B.)11.05%
C.)14.24%
D.)12.27%
E.)13.89%
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