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5. A $10,000 bank loan has a coupon rate of 10 percent. a. Calculate the effective interest cost if the loan is on a discount
5. A $10,000 bank loan has a coupon rate of 10 percent. a. Calculate the effective interest cost if the loan is on a discount basis. b. Calculate the effective interest cost if the loan requires a minimum compen- sating balance of 20 percent and it is on a discount basis. c. Calculate the effective interest cost if the loan requires a 25 percent compen- sating balance but it is on a collect basis
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