Suppose you can borrow money at 8.5% per year (APR), compounded semi-annually or 8.4% per year (APR)

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Suppose you can borrow money at 8.5% per year (APR), compounded semi-annually or 8.4% per year (APR) compounded monthly. Which is the better deal?

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Question Posted: Nov 14, 2017 02:12 AM

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Suppose you can borrow money at 8.5% per year (APR), compounded semi-annually or 8.4% per year (APR)

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Semiannual compounding means that the 85 percent loan really carries inte...View the full answer

Fundamentals of Corporate Finance

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