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TB 20-43 A firm borrows $100,000 from the bank, but h... A firm borrows $100,000 from the bank, but has to maintain a compensating balance

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TB 20-43 A firm borrows $100,000 from the bank, but h... A firm borrows $100,000 from the bank, but has to maintain a compensating balance of $20,000 with the bank. The annual interest rate for the loan is 12% What is the effective annual rate if the interest is compounded semi-annually? Multiple Choice 12.03% O 13.00% o 14.05% 15.56% O

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