Find the annualized cost of a commercial paper

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Problem 1: Find the annualized cost of a commercial paper that has a $5,000 face value, matures in 180 days, has a placement fee of 1% and an interest charge of 4% over the 180 day period. Assume the placement fee is paid at the time of issuance. Show your calculations.

Reference no: EM132808854

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