A firm arranges a discount loan at a 15 percent interest rate, and borrows $200,000 for one
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A firm arranges a discount loan at a 15 percent interest rate, and borrows $200,000 for one year. The stated interest rate is ________ and the effective interest rate is ________. What would be the effective rate if the bank required a compensating balance of 20%?
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Related Book For 
Essentials of Managerial Finance
ISBN: 978-0324422702
14th edition
Authors: Scott Besley, Eugene F. Brigham
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