Question
a. What interest rate would make it worthwhile to incur a compensating balance of $8,500 in order to get a 0.65 percent lower interest rate
| a. | What interest rate would make it worthwhile to incur a compensating balance of $8,500 in order to get a 0.65 percent lower interest rate on a 2 year, pure discount loan of $160,000? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Interest rate | % |
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Handbook Of Research Methods And Applications In Empirical Finance
Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk
1st Edition
1782540172, 978-1782540175
