Eurodollar loan

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Question

Grecian Tile Manufacturing of Athens, Georgia, borrows $900,000 at LIBOR plus a lending margin of 1.15 percent per annum on a six-month rollover basis from a London bank. If six-month LIBOR is 4.64 percent over the first six-month interval and 5.30 percent over the second six-month interval, how much will Grecian Tile pay in interest over the first year of its Eurodollar loan? (USD, no cents)

Reference no: EM133907204

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