Question

2.1 pintu Sacombank is planning to raise VND300 billion by selling and Currently, make rate for similar bonds is 15%. Other mobilistico VND 1 Million. The bank has to pay deposit insurance premium of 0.0015 per dong of insured bonds 107 of the nised amount is used for cash needs and 3% is reserved at the Central Bank, the remaining to fully invested Calculate the effective cost rate of borrowing these bonds

Answer 1

Answer . Page No (21) Effective cost rate Amount of bonds issued =vid 300,000 million Other mobilization cookies = VND 1500 million Deposit insurance premium = 0.0015 per dong X 300,000 =VND4 50 million Deposit with central bank - 34 X 300,000 = VAID 9000 million Interest cost = 1564. X-300,000 = VND 45000 million Cash ose of proceeds = 10% X 300,000 - VND 30,000 million Total cost 1500 + 450 + 9000 + 45000 + 30,000 - VND 85950 million Effective cool rate = VND 85950 million X100 = 29% VND 300000 million L' Effective cost soube' = 29%