Laurentide Resort Company Would Like to Issue $25 Million Face

question 70

Multiple Choice

Laurentide Resort Company would like to issue $25 million face value of 60-day commercial paper at a cost of 0.65%.In addition, the firm must maintain the $25 million credit line at a cost of 0.1% as a standby fee.What is the effective annual cost of this transaction?

• A)4.02%
• B)4.56%
• C)4.65%
• D)56.57%

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Definitions:

Bribery

The act of offering, giving, receiving, or soliciting something of value as a means of influencing the actions of an individual holding a public or legal duty.

Foreign Government Officials

Individuals who hold positions of authority or service in a government agency or department outside of one's own country, often involved in international relations or diplomacy.

Trade Agreements

Legal arrangements between countries that determine the rules of trade, including tariffs, quotas, and other trade restrictions.

Semiotics

is the study of signs and symbols and their use or interpretation.