In order to fund $725 million in new loans (earning assets), a bank must raise $750 million in a new offering of commercial paper through its bank holding company. The current interest rate for similar commercial paper is 7.15%, and they expect 0.15% in issuing costs. What is the effective rate of interest on this issue of commercial paper (i.e., the hurdle rate that must be earned on earning assets)?

	A.	7.40%
	B.	7.30%
	C.	7.55%
	D.	None of the other responses are correct
	E.	7.15%