Consider a syndicated loan with the following characteristics . The size of the loan is $600 million. The interest rate on the loan is set at the beginning of each year with the following mechanism: i=LIBOR +2.5% where LIBOR used will be the beginning of year LIBOR. Assume that at the time of signing the syndicated loan agreement, LIBOR is 3.5%. The upfront fee is 1.0% of the maximum amount of the loan The commitment fee is 0.75% at the annual rate The term of the loan is 5 years. The interest reset period is one year Suppose the borrower uses $400 million in the first month of the loan $500 million during the subsequent four months. $600 million in the next four montlis, and $300 million in the last three months of the first year . Consider a syndicated loan with the following characteristics . The size of the loan is $600 million. The interest rate on the loan is set at the beginning of each year with the following mechanism: i=LIBOR +2.5% where LIBOR used will be the beginning of year LIBOR. Assume that at the time of signing the syndicated loan agreement, LIBOR is 3.5%. The upfront fee is 1.0% of the maximum amount of the loan The commitment fee is 0.75% at the annual rate The term of the loan is 5 years. The interest reset period is one year Suppose the borrower uses $400 million in the first month of the loan $500 million during the subsequent four months. $600 million in the next four montlis, and $300 million in the last three months of the first year