Costs of Borrowing Come and Go Bank Offers your firm a 9 percent discount interest loan for
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Costs of Borrowing Come and Go Bank Offers your firm a 9 percent discount interest loan for up to $15 million, and in addition requires you to maintain a 5 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement?
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You will pay interest of Interest 1500000009 1350000 Additionally the compensating balance o...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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