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Todd Manufacturing Company needs a $100million loan for 1year. Todd’s banker has presented two alternatives as follows: Which of the following compensating balances, withheld from the loan proceeds, would result in Option #2 having an effective interest rate equal to the 10.25% rate of Option #1?A. $250,000 B. $2,440,000 C. $2,500,000 D. $10,250,000 |