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international finance 12. Vodafone a UK telecom is borrowing 250,000 via a syndicated euro credit for 6 years at 80 basis points over LIBOR. LIBOR
international finance
12. Vodafone a UK telecom is borrowing 250,000 via a syndicated euro credit for 6 years at 80 basis points over LIBOR. LIBOR for the loan will be reset every four months. The funds will be provided by a syndicate of five leading investment bankers, which will charge up-front fees totaling 1% of the principal amount. What is the effective interest cost for the first year if LIBOR is 4.00% for the first four months and 4.20% for the second four months and 4.25% for the last four months Step by Step Solution
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