A company borrows ($10,000) for two years, interest free, when the market interest rate is 10%, compounded
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A company borrows \($10,000\) for two years, interest free, when the market interest rate is 10%, compounded annually. At what amount should the liability be valued? How would your answer change if the liability were a current liability, with a term of six months?
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If the company borrows 10000 interestfree for two years it essentially incurs a financial obligation ...View the full answer
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