A12. (Cost of Bank Loan)
Corporate Financial Management (3rd Edition)
Emery, Douglas R., Finnerty, John D., & Stowe, John D. (2007)
Individual assignment: Text Problem Set
Chapter Problems
A12. (Cost of bank loan) A bank loan agreement calls for an interest rate equal to prime rate plus 1%. If prime rate averages 9% and non-interest-earning compensating balances equal to 10% of the loan must be maintained, what are the APR and the APY of the loan assuming annual payments?
Click here for the SOLUTION
Showing posts with label APY. Show all posts
Showing posts with label APY. Show all posts
Monday, February 1, 2010
Subscribe to:
Posts (Atom)