(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 5400.000 in 270 day maturity notes. The paper will carry a 10 50 percent rate with discounted Interest and will cost Tri-State $12,000 (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 papet? a. The effective cost of credit, or APR. 1o TriState is ]% (Round to two decimal places)