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Tropical Inc. plans to sell $60,000,000 of 120-day commercial paper, on which it expects to pay discounted interest at a rate of 5% per year.

Tropical Inc. plans to sell $60,000,000 of 120-day commercial paper, on which it expects to pay discounted interest at a rate of 5% per year. Annual dealer and back up fees are 15 and 20 basis points, respectively. The effective cost of commercial paper is

5.52%

1.81%

5.63%

7.21%

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