Question 8 1 pts Which of the following statement is correct? To compare the percent cost of a commercial paper issue to the percent cost of a bank loan, the commercial paper's discount yield must be converted to an effective annual interest rate. Trade credit is the act of obtaining funds by paying in advance to suppliers before the end of credit terms all in cash and the faster a company pays for purchases, the more trade credit the firm is said to be using. All the answers are incorrect. If the lender collects interest at the maturity with a discount interest loan, then the amount of money the borrower gets to use is increased significantly With a compensating balance on a loan, the borrower can allow the balance in the checking account to fall below the required minimum during the life of the loan and use the entire loan amount