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A Firm Issues Two-Month Commercial Paper with a $200,000 Face

Question 14

Multiple Choice

A firm issues two-month commercial paper with a $200,000 face value and receives $196,000.What is the EAR the firm is paying for these funds?

A) 12.5%
B) 12.6%
C) 12.9%
D) 12%
E) 12.2%

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