Everett's Electronics is receiving a senior bank loan with the following terms: $6MM principal, 5.6% interest rate, 7 year loan term, 0.75% commitment fee, and a 1% closing fee.   What is the expected annual return to the lender?   A. 5.85% B. 6.85% C. 5.91% D. 6.2%

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Everett's Electronics is receiving a senior bank loan with the following terms: $6MM principal, 5.6% interest rate, 7 year loan term, 0.75% commitment fee, and a 1% closing fee.

 

What is the expected annual return to the lender?

 

A. 5.85%

B. 6.85%

C. 5.91%

D. 6.2%

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