Question No 27 (8 points) You are the financial manager of Pipeline Pharmaceuticals. You need to raise nearly $450,000 to finance your working capital need for 3 months. You have two options. The first option is that your firm can issue a commercial paper with a face value of $450,000. The commercial paper will mature in 3 months. The net proceed from the sale of the paper will be $440,000 The second option is to take out a $500,000 loan from Prime Time Bank for 3 months. The APR on the loan will be 10% One condition of the loan is that Pipeline will have to maintain a compensating balance account with prime Time bank for 3 months. The compensating balance will have to be 10% of the loan principal. The compensating balance account will not pay any interest. As a prudent manager, you will use the cheaper of the two options. Which option will you choose