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A company just borrowed $1 million at 14% interest from a private lender. The company must pay the interest at the beginning of the
A company just borrowed $1 million at 14% interest from a private lender. The company must pay the interest at the beginning of the year (which is known as a haircut). The principal is repaid at the end of the year. What is the actual yield (i.e., discount rate) of this 1-year loan?
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SOLUTION The company borrowed 1 million principal Interest rate is 1...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
