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Author Question: DAS, Inc has a line of credit with FBT Bank that allows DAS to borrow up to 400,000 at an annual ... (Read 83 times)

ericka1

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DAS, Inc has a line of credit with FBT Bank that allows DAS to borrow up to 400,000 at an annual
  interest rate of 11 percent. However, DAS must keep a compensating balance of 25 percent of any
  amount borrowed on deposit at the bank.
 
  DAS does not normally have a cash balance account with
  the bank. What is the effective annual cost of credit?
  A) 12.59 B) 11.45 C) 16.00 D) 14.67

Question 2

Plymouth Fountains Inc. has issued 30-year semiannual coupon bonds with a face value of 1,000. If the annual coupon rate is 6 and the current yield to maturity is 7, what is the firm's current price per bond?
 
  A) 875.28
  B) 1,000.00
  C) 934.34
  D) 466.79


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tashiedavis420

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ericka1

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


nothere

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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