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The ABC company needs to borrow $3,200,000 and they have narrowed their choices to two loans: Loan A j2 = 6%, locked in
The ABC company needs to borrow $3,200,000 and they have narrowed their choices to two loans: • Loan A – j2 = 6%, locked in and amortized over 10-years with semi-annual payments • Loan B – j2 = 5%, semi-annual payments of interest only are made over 10-years, with the principal repaid in one lump sum at the end of 10-years
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a In order to even consider Loan B what rate of interest j2 must ABC earn on a sinking fund you may ...Get Instant Access to Expert-Tailored Solutions
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