Katz Corporation is planning to issue a $5,000,000 of 90-day commercial paper at interest rate of 5% per annum on a discounted basis. The total transaction fees include the following (b) Placement Fee Administrative Fee : 3% of the value of commercial paper issued : $7,000 or 0.5% of the value of commercial paper issued, whichever is higher Cost of backup credit line on using the commercial paper : 1% of the value of commercial paper issued What is the effective annual cost of issuing this commercial paper assuming interest is rolled-over every 90 days? (6 marks)