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Business, 25.05.2021 17:50 belindajolete

Burke Co. is considering the issue of commercial paper and would like to know the yield it should offer on its commercial paper. It believes that a 0.3 percent credit risk premium and a 0.2 percent liquidity premium are necessary to sell its commercial paper to investors. Furthermore, annualized T-bill rates are 8 percent. Based on this information, Burke should offer percent on its commercial paper. a. 8.5 b. 8.1 c. 7.5 d. 7.6

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