Calculate the firm annualized cost of funds

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MZC Ltd draws $2,000,000 in 180-day BABs at the current market rate of 7.0 percent per annum What proceeds will the firm receive from discounting the bill if the bank charges an acceptance fee of 1.5 percent? What is the firm's annualized cost of funds taking the acceptance fee into account? With all calculations.

Reference no: EM1366685

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