Make it worthwhile to incur a compensating balance

Assignment Help Financial Management

Reference no: EM13807489

What interest rate would make it worthwhile to incur a compensating balance of $9,000 in order to get a 0.65 percent lower interest rate on a 2 year, pure discount loan of $165,000? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM13807489

Questions Cloud

Summarize current practices or activitie related to function : Summarize current practices or activities related to the function, as well as technical, human relations/interpersonal, and conceptual skills needed to fulfill them.

Discuss the process of formal software testing : Discuss the process of formal software testing, including regression testing. Why is this done

Growing rapidly and has strong prospects : The company you cofounded last year is growing rapidly and has strong prospects for an IPO in the next year or two. The additional capital that an IPO could raise would let you hire the brightest people in the industry and continue to innovate with n..

Purpose and affiliation of the organization or author of web : What is the purpose and affiliation of the organization or author of the website

Make it worthwhile to incur a compensating balance : What interest rate would make it worthwhile to incur a compensating balance of $9,000 in order to get a 0.65 percent lower interest rate on a 2 year, pure discount loan of $165,000?

Slowness of network : ABC Corporation designs web sites and has been facing the following network problems for the past one month: Slowness of network and Poor application response time

Worthwhile to incur a compensating balance : What interest rate would make it worthwhile to incur a compensating balance of $9,000 in order to get a 0.65 percent lower interest rate on a 2 year, pure discount loan of $165,000?

Annual coupon paid semi-annually and matures : Big Rapids Homes has a bond issue outstanding that pays $60 annual coupon paid semi-annually and matures in 30 years. The bonds have a par value of $1,000 and a quoted market price of 95.5. What is the yield to maturity?

Exchange information about organizations : How have social media changed the way we exchange information about organizations and their products and services? How can services such as Facebook be used to communicate business proposals, plans, and reports?

User Account

All Pages