McGrath Corporation recently issued 210-day commercial paper with a face value of $1,500,000 and a simple interest rate of 13 percent. The company paid a transaction fee equal to 0.3 percent of the issue, which was taken out of the issue amount before the company received any funds. Assuming there are 360 days in a year, what are the commercial paper's annual percentage rate (APR) and effective annual rate (rEAR), respectively? (Round your answer to two decimal places.)

Question

Quizplus · Accepted Answer

The Answer of McGrath Corporation recently issued 210-day commercial paper with a face value of $1,500,000 and a simple interest rate of 13 percent. The company paid a transaction fee equal to 0.3 percent of the issue, which was taken out of the issue amount before the company received any funds. Assuming there are 360 days in a year, what are the commercial paper's annual percentage rate (APR) and effective annual rate (rEAR), respectively? (Round your answer to two decimal places.)

McGrath Corporation Recently Issued 210-Day Commercial Paper with a Face