Question
1. A) Calculate the annual effective cost of a $21,743 loan with an APR of 5.76%, compounded annually, with a 1.65% loan origination fee NOTE:
1. A) Calculate the annual effective cost of a $21,743 loan with an APR of 5.76%, compounded annually, with a 1.65% loan origination fee
NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign.
B) Company A wants to raise $1,000,000 using three-month commercial paper. The net proceeds to the bank will be $952,839. What is the effective annual rate of this financing for the company?
NOTE: Answer in percentages. If your answer is 0.0204, you must answer 2.04. Do not use the "%" sign.
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The Investors Guidebook To Fixed Income Investments
Authors: Stuart R. Veale
1st Edition
0735205310, 978-0735205314
