Question
Metrobank offers one-year loans with a 13 percent stated rate, charges a 1/2 percent loan origination fee, imposes a 7 percent compensating balance requirement, and
Metrobank offers one-year loans with a 13 percent stated rate, charges a 1/2 percent loan origination fee, imposes a 7 percent compensating balance requirement, and must pay a 6 percent reserve requirement to the Federal Reserve. What is the return to the bank on these loans?
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Financial Management
Authors: Rob Quail, Ricardo J. Rodriguez
2nd Edition
1557868441, 9781557868442
