A firm issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%.

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A firm issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25%

 

what is the effective cost of issuing the commercial paper?

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    A firm issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%.
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