Come and Go Bank offers your firm an 8 percent discount interest loan for up to $20

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Come and Go Bank offers your firm an 8 percent discount interest loan for up to $20 million, and in addition requires you to maintain a 3 percent compensating balance against the face amount borrowed. What is the effective annual interest rate on this lending arrangement?

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Related Book For  answer-question

Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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