For Bank Loans, the Effective Interest Rate Is Generally

question 55

Multiple Choice

For bank loans, the effective interest rate is generally

• A)not affected by whether or not the loan is a discount loan or a traditional loan.
• B)higher if the loan is a discount loan.
• C)lower if the loan is a discount loan.
• D)higher if the interest is paid at maturity.
• E)none of the above

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