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%

Question

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4.65% 11ea8229_3458_1803_bbd8_8bcf896f4c19_TB1726_00 11ea8229_3458_1804_bbd8_25063d09c4b1_TB1726_00 11ea8229_3458_1805_bbd8_7fe458efac35_TB1726_00 11ea8229_3458_1806_bbd8_95d34c937f64_TB1726_00

Laurentide Resort Company Would Like to Issue $25 Million Face