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Estimate the effective annualized cost of a loan with the following features: $30 million principal Upfront fee: 2% of principal Interest accrues at a compound
Estimate the effective annualized cost of a loan with the following features: $30 million principal Upfront fee: 2% of principal Interest accrues at a compound annual rate of 5%. Principal and accrued interest will be paid to the lender at the end of two years. Upfront bonus "equity" subscription worth $0.5 million awarded to lender Express your answer as a percentage to two decimal places.
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