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Problem 2: Mocoro Corporation, Inc., a well-known company, is planning to issue $4,500,000 worth of commercial paper with the maturity of six months (182 days),
Problem 2: Mocoro Corporation, Inc., a well-known company, is planning to issue $4,500,000 worth of commercial paper with the maturity of six months (182 days), and the market is willing to pay 95% of par value for it. It will sell the paper with a face or par value of $100,000. How many commercial papers will it sell? What is the cost of this borrowing to Mocoro Corporation?
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