Barnes inc needs to borrow money to take a leverage, Ask an Expert

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Barnes Inc. needs to borrow money to take a leverage position in an arbitrage position. Bank A offers to lend Barnes the required funds on a loan with monthly interest payments and a quoted rate of 8%. Bank B will charge 9% with interest due at the end of the year. What is the difference between the effective annual interest rates charge by the two banks?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92678554

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