Saved Help Save & Exit Submie Submit 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 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 findes answer to 2 decimal places.) Discounted commercial paper % d. Which alternative should be selected? Bank loan Activate Windows 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 % 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 Cost of forgoing discount Commerical paper