Question: 6 ) Jason s Birdfeed needs to borrow $ 1 million for ( one year ( 3 6 0 ) ) . It is considering

6) Jasons Birdfeed needs to borrow $1 million for (one year (360)). It is considering several possible options for a loan with a 8% interest rate. What is the effective rate for each of the following loans:
a. It has a compensating balance of 10%.
b. No compensating balance, but the loan is discounted.
c. It is repaid on a monthly installment basis.
d. It has a compensating balance of 5% and is discounted.

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