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Determining the compensating balance

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Reference no: EM132421994

Problem: SCI borrows SFr 1.5 million from Credit Suisse for one year at 14% interest. Interest is prepaid. What is the effective SFr interest rate on SCI loan? What if there is a 8% compensating balance? How much do you need to borrow to leave the bank with 1.5 million?

Reference no: EM132421994

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