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50What is the role of a prepayment penalty on a commercial loan?

Select one:

a. to compensate the

bank for pledging to make a loan at terms specified during the loan approval process

b. to compensate the bank for having to reinvest the loan proceeds into a different interest rate environment

c. to compensate the bank for duties required during the loan, such as real estate inspection fees

d. to reimburse the bank for special collateral issues, such as a collateral storage fee

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