Homework: Homework 7 Question 7, P16-15 (similar to) Put 1 of 2 HW Score: 0%, 0 of 0 points O Paints: 0 of 1 Cost of commercial paper Commercial paper is usually sold at a discount Fan Carporation has just sold an issue of 125-day commercial paper with a face value of $1.3 million. The firm has received initial proceeds of $1.262.624 (Note: Assume a 365-year) a. What affictive annual rate will the firm pay for financing with commercial paper, ssuming that is rolled over every 129 days throughout the year? b. If a brokerage fee of $12,034 was paid from the initial proceeds to an investment bankar for seling the issue, what affective annual rate will the firm pay, ming that the paper is rolled over every 12 days throughout the a. The effective annual rate the firm will pay for financing with commercial paper, assuming that it is rated over every 125 days throughout the year, sound to two decimal places) Save