Rapier Fencing requires $750,000 in financing for a 60 -day period. Three alternatives are being considered. a. Establish a line of credit with the bank at an interest rate of 6 percent payable on a discounted basis. b. Forgo trade discounts from suppliers on terms of 1.5/10, net 70 . c. Issue commercial paper for 60 days sold at a discounted price of 98.8 percent of maturity value. a. What would be the rate of interest for bank loan? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Rate of Interest for bank loan 6.22 b. What would be the cost of forgoing the cash discount? Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of forgoing the cash discount % c. What would be the cost of commercial paper? (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Discounted commercial paper % d. Which alternative should be selected? Bank loan Randall Corporation plans to borrow $200,000 for one year at 8 percent from the Dominion Trust Company. There is a 20 percent compensating balance requirement. Randall keeps minimum transaction balances of $10,000 in the normal course of business. This idle cash counts toward meeting the compensating balance requirement. What is the annual rate of interest? (Use 365 days in a year. Round the final answer to 2 decimal places.) Annual rate of interest %