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Dazzly Diamond plans to issue commercial paper for the first time. The firm plans to issue $400,000 in 120-day maturity notes. The paper will carry
Dazzly Diamond plans to issue commercial paper for the first time. The firm plans to issue $400,000 in 120-day maturity notes. The paper will carry a 13% quarterly compounded rate with discounted interest and will cost $8,000 to issue. What is the effective cost of credit to Dazzly Diamond?
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