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Criss-cross manufacturers will issue commercial paper for a short-term cash inflow. Criss-cross must raise $5,350,000 and the paper will have a maturity of 182 days.

Criss-cross manufacturers will issue commercial paper for a short-term cash inflow. Criss-cross must raise $5,350,000 and the paper will have a maturity of 182 days. If this paper has a maturity value of $50,000 and is selling at an annual interest rate of 8.8%, what are the proceeds from each paper; that is, what is the discount rate on the commercial paper?

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