A loan officer is preparing the documents for a commercial term loan. The borrower's risk profile suggests that an annualized return (EAR) of 6.3% is appropriate. The loan will require semi-annual payments, i.e., one payment every six months. What APR (compounded semi-annually) should be used to compute the borrower's future payments?

Answer rating: 100% (QA)

To calculate the APR Annual Percentage Rate compounded semiannually we can use the formula for conve... View the full answer