QUESTION 15 A corporation is planning to issue $25 million worth of 270-day commercial paper. In order to reduce the interest rates by 75 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 35 basis points (per year to be paid up front. The loan commitment for $25 million is available for an up-front fee of 25 basis points (per year) and a 15 basis points back-end fee. What are the savings to the corporation ifit obtains a standby letter of credit to back its 525 million issue of commercial paper? A $60,250 B. $65,000 C. $75,000 D. 585,000 E. None of the above