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Question
A $200 million loan commitment has an up-front fee of 20 basis points and a back-end fee of 25 basis points on the unused portion.
If 50 percent of the commitment is taken down, the back-end fee is
A. $250,000.
B. $4,000,000.
C. $400,000.
D. $775,000.
E. $375,000.
Answer
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