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Magna Corporation has an issue of commercial paper with a face value of $1,350,000 and a maturity of six months. Magna received net proceeds of

Magna Corporation has an issue of commercial paper with a face value of $1,350,000 and a maturity of six months. Magna received net proceeds of $1,313,064 when it sold the paper. What is the effective annual rate (EAR) of the paper to Magna? The effective annual rate is 1.031.03%. (Round to two decimal places.)

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