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You need to borrow $10 million for 90 days. You have the following alternatives: Issue high-grade commercial paper, with a backup line of credit costing

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You need to borrow $10 million for 90 days. You have the following alternatives: Issue high-grade commercial paper, with a backup line of credit costing .3% a year. a. b. Borrow from First Cookham Bank at an interest rate of .25% over LIBOR. C. Borrow from the Test Bank at prime. Given the rates currently prevailing in the market (see, for example, The Wall Street Journal), which alternative would you choose

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