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

Question 68

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 taken down,the total fees are


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

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