Hello! I have this question

Rockford Filing Ltd. requires $1 million in financing for a 45-day period. Three alternatives are being considered.

a.Establish a line of credit with the bank at an interest rate of 10 percent. The bank will charge a fee of 1% to establish the line of credit.

b.Forgo trade discounts from suppliers on terms of 2/15, net 60.c.Issue commercial paper for 45 days at a discount of 1.25 percent.

a.What is the actual percentage cost of the line of credit?

c.What would be the price of commercial paper?