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

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Magna Corporation has an issue of commercial paper with a face value of $1,000,000 and a maturity of six months. Magna received net proceeds of $958,520 when it sold the paper. What is the effective annual rate (EAR) of the paper to Magna? (Hint: Do not round until you get to the final step.)

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