Interest rates on short-term loans
Question 1: Why do investors require firms issuing commercial paper to be of high creditworthiness?
Question 2: Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.
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Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.
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What is the effective interest rate on the typical loan with a nominal 8% interest rate and a 10% compensating balance?
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