Tommy arranged a P10,000,000 revolving credit agreement with a group of banks. The company paid an annual commitment fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 2.0% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 10% during the year. If the company borrowed P8,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what is the total I peso annual cost of the revolver? Answer: Suppose that P10,000,000 face value commercial paper with a 180-day maturity is selling for 19,500,000. a. What is the yield to the investor on the commercial paper? Answer: b. What is the effective cost of the commercial paper to the issuer? Answer: I