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CTP · Question #543
CTP Question #543: Real Exam Question with Answer & Explanation
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Question
- (Topic 6) A company has a $2 million line of credit requiring a 5% compensating balance on usage. For the next year, the company projects a usage of 75% and a 10.375% interest rate. If the balance requirement is eliminated, by how many basis points will the company's effective interest rate be reduced?
Options
- A18
- B30
- C55
- D74
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