Question
Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $22 million, and in
Come and Go Bank offers your firm a discount interest loan with an interest rate of 10 percent for up to $22 million, and in addition requires you to maintain a 4 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
