Question: Would it be worth it to incur a compensating balance of $10,000 in order to get a 1-percent-lower interest rate on a one-year, pure discount

Would it be worth it to incur a compensating balance of $10,000 in order to get a 1-percent-lower interest rate on a one-year, pure discount loan of $225,000?


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It depends upon whether 225000 1 i or 235000 1 i 001 is larger The compensating balan... View full answer

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