$($Cost of commercial paper$)$ Tri$-$State Enterprises plans to issue commercial paper for the first time in the firm's $35-$year history. The firm plans to issue $$400,000$ in $270-$day maturity notes. The paper will carry a $10\mathrm{.}00$ percent rate with discounted interest and will cost Tri$-$State $$14,000($paid in advance$)$ to issue. Note: Assume a $30-$day month and $360-$day year.

a$.$ What is the effective cost of credit to Tri$-$State?

b$.$ What other factors should the company consider in analyzing whether to issue the commercial paper?

a$.$ The effective cost of credit, or APR, to Tri$-$State is

$\%.($Round to two decimal places.$)$