Bravo Corporation recently issued 270-day commercial paper with a face value of $2,000,000 and a simple interest rate of 11 percent. The company paid a transaction fee equal to 0.4 percent of the issue, which was taken out of the issue amount before the company received any funds. Assuming there are 360 days in a year, what is the commercial paper's effective annual rate (r_EAR)? (Round your answer to two decimal places.)

a. 11.89%

b. 12.85%

c. 12.02%

d. 12.82%

e. 11.58%