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Cost of commercial paper   Commercial paper is usually sold at a discount. Fan Corporation has just...

Cost of commercial paper   Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 81​-day commercial paper with a face value of ​$1.2 million. The firm has received initial proceeds of ​$1 comma 164 comma 759. ​ (Note​: Assume a 365​-day ​year.) a.  What effective annual rate will the firm pay for financing with commercial​ paper, assuming that it is rolled over every  81 days throughout the​ year? b. If a brokerage fee of ​$11 comma 741 was paid from the initial proceeds to an investment banker for selling the​ issue, what effective annual rate will the firm​ pay, assuming that the paper is rolled over every 81 days throughout the​ year?

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