A large clothing retailer issues $100 million face value 60-day commercial paper for net proceeds of $99.60 million. The clothing retailer must maintain a $100 million credit line, on which it must pay a standby fee of .1 percent. What is the effective annual cost to the clothing retailer of this financing arrangement? What is the quoted yield?

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The Answer of A large clothing retailer issues $100 million face value 60-day commercial paper for net proceeds of $99.60 million. The clothing retailer must maintain a $100 million credit line, on which it must pay a standby fee of .1 percent. What is the effective annual cost to the clothing retailer of this financing arrangement? What is the quoted yield?

A Large Clothing Retailer Issues $100 Million Face Value 60-Day