Question 27.7: Calculate the interest rate paid by MdP six years after the ...
Calculate the interest rate paid by MdP six years after the beginning of the deal in Business Snapshot 27.2 if the Euribor rate proves to be 8% from year 2 onward.
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Each quarter from year 2 onward, the interest rate would increase by 4%. After 16 quarters, the rate would increase to 1.76% + 16 × 4% = 65.76%.
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