A corporation is planning to issue $20 million worth of 180-day commercial paper. In order to reduce the interest rates by 25 basis points (per year), it plans to back this issue with a standby letter of credit or a loan commitment. The standby letter of credit is available for 21 basis points (per year) to be paid up-front. The loan commitment for $10 million is available for an up-front fee of 16 basis points (per year) and a 5 basis points back-end fee. What are the savings to the corporation if it obtains a standby letter of credit to back its $20 million issue of commercial paper? $1,250. $2,500. $3,750. $3,945. $6,250