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Trend Corporation is considering the issue of commercial paper and would like to know the yield it should offer on its commercial paper. The corporation
Trend Corporation is considering the issue of commercial paper and would like to know the yield it should offer on its commercial paper. The corporation believes that a 0.2 percent credit risk premium, a 0.1 percent liquidity premium, and a 0.2 percent tax adjustment are necessary to sell its commercial paper to investors. Furthermore, annualized rates on short-term Treasury securities (T-bills) are 7 percent. Based on this information, Trend should offer ____ percent on its commercial paper
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