What is the effective annual rate of interest

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Reference no: EM131560916

The Waldorf Corporation issued some commercial paper with a face value of $2,000,000 and a maturity of 270 days. Investors in the commercial paper market have a required return of 4.2%

a) How much money will Waldorf raise with this paper? (round to the nearest dollar).

b) What's the effective annual rate of interest that Waldorf pays for the funds acquired? (round to decimal places).

Reference no: EM131560916

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