Question
Use the following information for the next two questions. Company A purchased a piece of equipment as follows. Face value 100,000 Coupon rate 2.0% Market
Use the following information for the next two questions.
Company A purchased a piece of equipment as follows.
| Face value | 100,000 |
| Coupon rate | 2.0% |
| Market rate | ??? |
| Term of note | 5 |
You can buy the equipment for cash for the following amount.
| Fair value of the vehicle | 92,000 |
Assuming equal annual payments of principal and interest, what is the actual interest rate (or market rate) the dealership is charging?
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Venture Capital And The Corporate Governance Of Chinese Listed Companies
Authors: Lin Zhang
1st Edition
1461412803,1461412811
