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A treasury manager is examining the potential to issue commercial paper based on the following assumptions: Face Value = $25,000,000 Discount Rate = 0.75% Dealer

A treasury manager is examining the potential to issue commercial paper based on the following assumptions:

Face Value = $25,000,000

Discount Rate = 0.75%

Dealer Fee = 0.25%

Commitment Fee = 0.15%

Days to Maturity = 30

Based on these assumptions, what is the effective cost of the commercial paper?

A.1.17%

B.0.76%

C.0.75%

D.1.58%

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