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The Carter State Bank is planning on raising $600 million in a new offering of commercial paper through its holding company. It plans on using

The Carter State Bank is planning on raising $600 million in a new offering of commercial paper through its holding company. It plans on using $500 million of it to fund new loans. The current interest rate for similar commercial paper is 4.85 percent and it expects 0.3 percent in issuing costs. What is the effective rate of interest on this issue of commercial paper?

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