Question
Company A takes a $750000 loan at a 8% APR rate with quarterly compounding. If the company takes 10% and puts it in an interest-bearing
Company A takes a $750000 loan at a 8% 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 firm three-month loan? What will be the effective payment?
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
