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The Malaysian Government wants to attract IBM into setting up a local production facility with an 8-year, USD48 million loan at 5.78%. The entire principal
The Malaysian Government wants to attract IBM into setting up a local production facility with an 8-year, USD48 million loan at 5.78\%. The entire principal is to be repaid at the end of the 8th year. The market interest rate on such a loan is 9.39%. How much is this loan worth to IBM? a. USD1.733 million b. USD11.186 million c. USD9.453 million d. USD5.455 million e. None of the options in this question are correct
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