8 Homework (modifi... DOCX eck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Day I Met Dad 9 Return to question a. Establish a line of credit with the bank at an interest rate of 10 percent. The bank will charge a fee of 1% to establish the line of credit. b. Forgo trade discounts from suppliers on terms of 2/15, net 60. c. Issue commercial paper for 45 days at a discount of 1.25 percent. a. What is the actual percentage cost of the line of credit? Rate of Interest for bank loan 18.11 % b. What would be the cost of forgoing the cash discount? Cost of forgoing the cash discount 8.76 % c. What would be the cost of commercial paper? Discounted commercial paper 10.27 % d. Which alternative should be selected? Bank loan Cost of forgoing discount Commerical paper