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. Your company is opening a bank line of credit. The facility amount is $10MM with $3MM func he interest rate is 5% per year based on a three year commitment. The unused line fee is 0. he commitment fee is 0.75% and the closing fee is 1%. What is the expected annual return? . 11.3% 5.7.4% . 19.1% ). 7.1%

. Your company is opening a bank line of credit. The facility amount is $10MM with $3MM func he interest rate is 5% per year based on a three year commitment. The unused line fee is 0. he commitment fee is 0.75% and the closing fee is 1%. What is the expected annual return? . 11.3% 5.7.4% . 19.1% ). 7.1%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. Your company is opening a bank line of credit. The facility amount is $10MM with $3MM funded. The interest rate is 5% per year based on a three year commitment. The unused line fee is 0.2%, the commitment fee is 0.75% and the closing fee is 1%. What is the expected annual return? A. 11.3% B. 7.4% C. 19.1% D. 7.1%
Transcribed Image Text:2. Your company is opening a bank line of credit. The facility amount is $10MM with $3MM funded. The interest rate is 5% per year based on a three year commitment. The unused line fee is 0.2%, the commitment fee is 0.75% and the closing fee is 1%. What is the expected annual return? A. 11.3% B. 7.4% C. 19.1% D. 7.1%
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