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April 25, 2014

Homework Help: Business Finance

Posted by Karla on Thursday, March 1, 2012 at 2:06am.

Assume a bank loan requires a interest payment of $85 per year and a principal payment of $1,000 at the end of the loan's eight-year life.
a) How much could this loan be sold for to another bank if loans of similar quality carried a 8.5 percent interest rate?

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