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How much is this loan worth to nike

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Question - Suppose that one of the incentives provided by Bangladesh to attract Nike into setting up a local production facility is an 8-year, USD17 million loan at 5.75%. The principal is to be repaid at the end of the 8th year. The market interest rate on such a loan is 9.45%. With a marginal tax rate of 20%, how much is this loan worth to Nike?

Reference no: EM133109961

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