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A loan officer is preparing the documents for a commercial term loan. The borrower's risk profile suggests that an annualized return (EAR) of 6.3% is

A loan officer is preparing the documents for a commercial term loan. The borrower's risk profile suggests that an annualized return (EAR) of 6.3% is appropriate. The loan will require semi-annual payments, i.e., one payment every six months. What APR (compounded semi-annually) should be used to compute the borrower's future payments?


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