Sun Bank Has Issued a One-Year $5 Million Loan Commitment

question 24

Multiple Choice

Sun Bank has issued a one-year $5 million loan commitment to a customer for an up-front fee of 15 basis points and at a fixed rate of 12 percent.The back-end fee for the unused portion of the commitment is 5 basis points.The bank requires a 10 percent compensating balance in demand deposits.Reserve requirements on demand deposits are 10 percent. What is the expected return on the loan to the bank if 50 percent of the loan is drawn using discounted cash flows? That is, the return has to be estimated at the beginning of the loan period using present values.Assume there are reserve requirements of 10 percent on demand deposits.

• A)12.00 percent.
• B)12.26 percent.
• C)12.59 percent.
• D)13.01 percent.
• E)13.26 percent.

Comprehend the implications of being a purported partner and the liability that arises from representations of partnership.

Understand the difference between repressible and inducible operon systems.

Identify the molecules acting as inducers, co-repressors, and activators in gene regulation.

Comprehend the roles of transcription factors, operators, promoters in gene expression.

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Definitions:

Mosquito Control

The management and reduction of mosquito populations to minimize their damage to human health, economies, and enjoyment.

Marginal Cost

The financial impact of producing one additional unit of a product or service.

Treatment

A specific procedure or method used to address a disease, condition, or injury.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without permission, typically through legal or physical means.