A corporation arranges for a $10 million line of credit. The corporation needs to have regular access to $6 million of this amount. The bank also requires a compensating balance of 10%. The all-in...



  • A corporation arranges for a $10 million line of credit. The corporation needs to have regular access to $6 million of this amount. The bank also requires a compensating balance of 10%. The all-in rate is 6% and the commitment fee is 0.30% on the unused portion of the line. What is the annual interest rate?




  1. 59%

  2. 67%

  3. 83%

  4. 89%



Jun 05, 2022
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