A $200 Million Loan Commitment Has an Up-Front Fee of 20

question 59

Multiple Choice

A $200 million loan commitment has an up-front fee of 20 basis points and a back-end fee of 25 basis points on the unused portion. If 25 percent of the commitment is drawn down, the total fees are

• A)$250,000.
• B)$4,000,000.
• C)$400,000.
• D)$775,000.
• E)$375,000.

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