Finance homework-call options…i need this in excel

One strategy for borrowing the $100 million would be to take out a loan from a commercial bank. A commercial loan typically has an interest rate that is based on the prime rate — which is currently 3.25% — plus an additional percentage based on one’s creditworthiness and the amount borrowed. For example, if one had excellent credit and was seeking a large loan then they could potentially qualify for a lower interest rate than someone with less favorable financial history who only needed smaller amounts.

Assuming you have good credit and are able to secure this loan then your effective borrowing rate would likely be somewhere around 4-6%. This is slightly higher than what other types of debt such as bonds or government loans may offer but it still provides relatively low costs in terms of repayment over time since these rates tend to remain fairly steady unlike other forms of financing that fluctuate depending on certain market conditions.

Overall, taking out a commercial loan can be an effective way of borrowing the $100 million if done correctly as long as all conditions are met and agreed upon by both parties involved. This type of arrangement could also provide greater flexibility when it comes to payment plans due to its adjustable nature which makes it ideal in situations where specific needs must be taken into consideration before making any major decisions.