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Question
Marley Financial plans to sell $50,000,000 of 120-day commercial paper, on which it expects to pay discounted interest at a rate of 5% per year. Dealer fees are expected to be $30,000. The effective cost of credit to Marley Financial isA) 5.27%.
B) 5.64%.
C) 6.22%.
D) 7.53%.
Answer
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