Question
In exchange for a $3,000,000 line of credit, a company has agreed to pay 1% per quarter on any funds actually borrowed and maintain a
In exchange for a $3,000,000 line of credit, a company has agreed to pay 1% per quarter on any funds actually borrowed and maintain a 2% compensating balance on any funds actually borrowed. What is the effective annual interest rate on this lending arrangement?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
