Question
Company A takes a $500000 loan at a 12% APR rate with quarterly compounding. If the company takes 10% and puts it in an interest-bearing
Company A takes a $500000 loan at a 12% APR rate with quarterly compounding. If the company takes 10% and puts it in an interest-bearing account. The bank that serve the firm pays 1% APR with quarterly compounding. What is the EAR of the firm three-month loan? What will be the effective payment?
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
