What is the loan amount they have to borrow

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Reference no: EM132020239

1. A firm wishes to borrow $92,000 The line of credit with its bank requires a 5% compensating balance requirement. What is the loan amount they have to borrow?

2. Let's say a broker quotes you a price of $920 on a 6% , 10 year bond, annual interest rate face value of 1000 . What is the yield of maturity and what is the current yeild of the bond?

3. A firm has a $200,000 line of credit with a 6% compensating balance requirement. The quoted rate on the line is prime +5%, and the prime rate is currently 3.4%. What is the effective annual rate (EAR)?

Reference no: EM132020239

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