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The HTR Bank is planning on raising $750 million in a new offering of commercial paper through its holding company. It plans on using $725
The HTR Bank is planning on raising $750 million in a new offering of commercial paper through its holding company. It plans on using $725 million of it to fund new loans. The current interest rate for similar commercial paper is 7.15% and it expects .15 percent in issuing cost. What is the effective rate of interest on this issue of commercial paper? Can someone help me solve this will all steps to get to the answer shown? Thank you.
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