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Toyota is interested in borrowing $5 million for 90 days. Bank of America has quoted a rate

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Toyota is interested in borrowing $5 million for 90 days. Bank of America has quoted a rate which is 1.125 percent under the prime rate of 6.25 percent. Daiwa Bank is offering Toyota a rate which is 0.75 percent over the three-month LIBOR of 4.2 percent. Which is the better deal for Toyota, and what is the lower interest cost in dollars?

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Bank of America Loan Amount Toyota plans to borrow 5 million Term of loan 90 days Interes...View the full answer


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Munibah Munir
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