Brief Exercise 13-5 (Static) Noninterest-bearing note; effective interest rate [LO13-2] Life.com issued $10 million of commercial paper on April 1 on a nine-month note. Interest was discounted at issuance at a 6% discount rate. What is the effective interest rate on the commercial paper? (Do not round intermediate calculation. Enter your answers in whole dollars. Round "Annual Effective Rate" to 1 decimal place. (i.e., 0.123 should be entered as 12.3).) Annual Rate Time Discount Principal 10,000,000 x Calculation of discount $ 61% X 9/12 = $ 450,000 9-month rate Annual Effective Rate Conversion Factor 12/9 Discount $ 450,000 0 % 6.3% Proceeds