Cost of Commercial Paper. Cho Corporation issues $500,000, 20 percent, 120-day commercial paper. However, the funds are

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Cost of Commercial Paper. Cho Corporation issues $500,000, 20 percent, 120-day commercial paper. However, the funds are needed for only 90 days. The excess funds can be invested in securities earning 19 percent. The brokerage fee for the marketable security transaction is 1.0 percent.

What is the net cost to the company for issuing the commercial paper?