Come and Go Bank offers your firm a 10 percent discount interest loan for up to $25
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Come and Go Bank offers your firm a 10 percent discount interest loan for up to $25 million, and in addition requires you to maintain a 5 percent compensating balance against the amount borrowed. What is the effective annual interest rate on this lending arrangement?
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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