What is the all-in cost of a 5-year loan? What are its main components?
What will be an ideal response?
The all-in-cost (AIC) is the internal rate of return that sets the proceeds from the loan equal to the discounted present value of the payments on the loan. As such, the AIC has three components: The "default free" interest rate, the credit spread, and transaction costs. The default free interest rate is the rate available on risk-free government securities of the same maturity. The credit spread is the difference between the borrowing cost of the company and the borrowing cost of the government and reflects the market's assessment of the ability of the company to repay its debt. Finally, transaction costs reflect the fees that a company pays to arrange the bond, which also effectively raise the interest rate payable on the loan.
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A) green marketing B) consumerism C) sustainability D) environmental E) sociological
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A) Budget objectives B) Message objectives C) Creative strategies D) Advertising appeals E) Media plans
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a. Asia *b. North America c. South America d. Central America