Question
AAA Bank will give your company a one-year loan at an interest rate of 20 percent payable at maturity, while BBB Bank will lend on
AAA Bank will give your company a one-year loan at an interest rate of 20 percent payable at maturity, while BBB Bank will lend on a discount basis at a 19 percent interest rate. Based on effective interest rate, which bank would you choose? Explain.
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
