Cost of commercial paper Better Effort Corporation sold an issue of $95-$day commercial paper with a face value of $$0\mathrm{.}9$ million. The firm has received initial

proceeds of $$887,293.($Note: Assume a $365-$day year.$)$

a$.$ What effective annual rate will the firm pay for financing with commercial paper, assuming that it is rolled over every $95$ days throughout the year?

b$.$ If a brokerage fee of $$8,384$ was paid from the initial proceeds to an investment banker for selling the issue, what effective annual rate will the firm pay, assuming

that the paper is rolled over every $95$ days throughout the year?

a$.$ The effective annual rate the firm will pay for financing with commercial paper, assuming that it is rolled over every $95$ days throughout the year, is $\%.($Round to

two decimal places.$)$