You have approached your local bank for a start-up loan commitment for $420,000 needed to open a computer repair store. You have requested that the term of the loan be one year. Your bank has offered you the following terms: size of loan commitment = $420,000, term = one year, up-front fee = 45 basis points, back-end fee = 60 basis points, and rate on the loan = 5 percent. Assume you immediately take down $167,000 and no more during the year.