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1.) A firm has a committed line of credit with a maximum of $10 million and an interest rate of 8.5% (EAR) with a certain

1.) A firm has a committed line of credit with a maximum of $10 million and an interest rate of 8.5% (EAR) with a certain bank. The commitment fee is 0.5% (EAR). The firm borrows $2 million at the start of the year and then repays it at the end of the year. What is the total cost of the loan?

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