Your company exported processed healthy almond products to Canada, and received USD 3 million banker's acceptance that is due in six months. Your company needs cash now to pay the annual bonus. Having discussed with Bank of America (BOA), you find out that a 0.45% acceptance fee is charged on that banker's acceptance which can be sold at a discount of 1. 6%.
What is the all-in cost (using EAR)?
a. 8.50%
b. 4.12%
c. 2.06%
d. 4.16%