Question
Greetings, I'm struggling with this question. Any help is truly appreciated. Thank you very much! Your company has agreed to a $340 million fixed-commitment line
Greetings,
I'm struggling with this question. Any help is truly appreciated. Thank you very much!
Your company has agreed to a $340 million fixed-commitment line of credit. The loan agreement calls for your company to pay 1.41 percent per quarter on any funds borrowed and maintain a 6 percent compensating balance on any funds borrowed at zero percent interest. What is the effective annual interest rate on this line of credit?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
