Alpha Geek

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Category > Accounting Posted 10 May 2017 My Price 5.00

Assume a bank loan requires an interest payment of $85

Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan's eight-year life.a. at what amount could this loan be sold for to another bank if loans of similar quality carried an 8.5 percent interest rate?b. Now, if interest rates on other similar quality loans are 10 percent, what would be the PV of this loan?c. What would be the PV of the loan if the interest rate is 8 percent on similar quality loans?

Answers

Alpha Geek
(8)
Status NEW Posted 10 May 2017 01:05 PM My Price 5.00

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file 1494422987-Answer.docx preview (98 words )
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