Question
Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can borrow on an installment loan basis at a 6%
Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can borrow on an installment loan basis at a 6% add-on rate with 12 end-of-month payments. What is the effective annual cost (not the nominal cost) of the bank loan, assuming 360 days per year?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
