Basic Energy plans to take a $200 million 270-day maturity commercial paper at discounted interest rate of

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Basic Energy plans to take a $200 million 270-day maturity commercial paper at discounted interest rate of 12%. Since there is an allowance already in the amount of $200 million, Basic Energy does not need to increase the issue size because of the discounting arrangement. However, in doing so it would incur approximately $500,000 in dealer placement fees and other expenses of issuing the commercial paper. What is the interest cost in dollars for Basic Energy? Assume 360 day year

Posted Date: May 18, 2024 10:14 PM

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Basic Energy plans to take a $200 million 270-day maturity commercial paper at discounted interest rate of

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